THE  UNIVERSITY 
OF  ILLINOIS 
LIBRARY 


ECONOMICS 


Digitized  by  the  Internet  Archive 
in  2014 


https://archive.org/details/firstmortgagebonOOhous 


THE 


COMPANY 

EARNINGS  AND  EXPENSES, 

FROM 

May,  1867,  to  May,  1868, 

AND 

CONDITION  OF  THE  COMPANY, 
May  1st.,  1868. 


HOUSTOxN: 

A.  r.  (IKAV  &  CO.,  PRINTERS  AND  KOOK-KINhlORS. 
1868. 


THE 


HOUSTON  AND  TEXAS 

FIRST  MORTGAGE  BOND, 
EARNINGS   AND  EXPENSES 

From  May,  1867,  to  May,  1868,  and 

oo3srr>TTio3sr  of  tkce  oo3S/it> A.3sr 

MAY  1,  1S68. 


HOUSTON,  TEXAS: 
A.  C.  Gray  &  Co.,  Printers  and  Book  Binders. 


1868. 


OFFICERS. 


 :o:   ' 

W.  E.  BAKER,       -       -  President. 
A.  S.  RICHARDSON,   -     -     Sec'y  &  Treas. 


DIRECTORS. 


W.  J.  HUTCHINS,       -       -  Houston. 

W.  R.  BAKER,  ... 

W.  M.  RICE,      -      .      -  - 

PAUL  BREMOND, 

ABRAM  GROESBEECK, 

J.  R.  MORRIS,     -      -      -  - 

CORNELIUS' ENNIS,     -      -  Galveston. 

DAVID  H.  PAIGE,             -  New  York. 

Wm.  E.  DODGE,      ,      -      -  r.  u 


3  7^.4 

Clje  gouston  ^  %mB  Central  "^mhm 

Is  built  and  being  run  from  Houston  to  Bryan,  one  hundred 
miles,  in  a  northerly  direction.  It  connects  at  Houston  with  the 
•Galveston,  Houston  and  Henderson  Railroad,  which  runs  fifty 
miles  to  Galveston,  the  chief  seaport  and  harbor  of  Texas. 

For  fifty  miles,  to  the  town  of  Hempstead,  it  is  the  main  trunk, 
also,  to  Austin,  the  capitol  of  the  State;  at  Hempstead  it  connects 
with  the  Washington  County  Railroad,  built  to  Brenham,  twenty- 
five  miles,  from  whence  it  will  be  extended  to  Austin,  85  miles,  j/^  ^tr^ 
which  road  is  owned  and  run  by  this  Company.  ^ 

There  is  under  contract,  partly  built,  and  to  be  finished  by  1st 
October,  1868,  thirty  additional  miles  of  road,  extending  from 
the  present  terminus,  Bryan,  to  Calvert,  in  Robertson  County, 
which  will  make  of  finished  road,  one  hundred  and  fifty-five  miles, 
including  the  Austin  Branch. 

The  contemplated  terminus  of  the  Houston  and  Texas  Central 
Railway  is  on  Red  River,  at  some  point  in  Fannin  or  Grayson  ^^Y^ 
counties,  about  355  miles  north  of  Houston,  at  which  point  it  is 
expected  that  a  connection  will  be  made  with  a  road  or  roads  now 
projected  from^he  Missouri  river  in  Kansas,  and  St.  Louis,  in 
Missouri,  to  be  run  southward  to  that  point ;  altogether  to  com- 
pose a  grand  trunk  highway,  on  a  line  about  350  miles  west  of  the 
Mississippi  river,  and  running  parallel  with  it,  from  the  Missouri 
river  to  the  Gulf  of  Mexico,  at  Galveston. 

The  whole  line  of  this  road  to  Red  River  lies  through  as  rich 
an  agricultural  region,  as  exists  in  the  United  States.  On  either 
side  lay  the  unexcelled,  alluvial  bottom  lands  of  the  Brazos  and 
Trinity  rivers,  and  between  them,  along  the  course  of  this  road, 
the  most  fertile  and  beautiful  uplands  ever  beheld  or  cultivated  by 
man.  Along  the  whole  line  the  soil  will  produce  in  the  highest 
perfection,  cotton  and  corn,  as  well  as  a  great  variety  of  vegetables 
and  fruits  of  less  importance.  And  from  Red  River  south  for  two 
hundred  miles,  it  is  not  an  exaggeration  to  say,  that  there  is  not 
in  the  United  States  any  section,  except  perhaps  portions  of  Cali- 


4 


fornia,  that  can  equal  it  in  the  production  of  wheat,  rye  and  bar- 
ley ;  and  for  stock  raisitfg  of  all  kinds  it  has  no  equal. 

It  has  now  an  active,  industrious,  thrifty,  though  sparse  popu- 
lation, but  daily  augmenting  by  the  force  of  its  unexampled  at- 
tractions ;  and  all  that  is  needed  to  induce  its  full  development, 
is  transportation,  which  the  building  of  this  road  will  furnish.  It 
will  run  through  eleven  counties,  and  on  each  side  will  be  twice 
as  many  more,  which  probably  for  all  time  will  use  this  road  to 
send  to  market  their  surplus  productions,  and  over  it  receive  their 
supplies.  It  will  be  the  first  road  built  through  that  region,  the 
main  trunk  from  which  many  spurs  and  branches  will  diverge  ; 
although  five  times  the  area  of  country  would  be  tributary  to  this 
line  of  road  if  now  completed,  than  is  above  claimed  for  it,  and  it 
would  enjoy  the  whole  trade  for  a  series  of  years  to  come.  Still 
in  the  course  of  time  other  roads  will  be  built,  which  will  circum- 
scribe  the  area  now  dependent  upon  it.  Calculation  is,  therefore, 
only  made  on  what  could  be  permanently  relied  on  as  tributary  to 
it.  Each  county  contains  over  a  half  million  acres,  and  compara- 
tively none  of  it  waste  land.  Much  of  it  will  produce  one  bale  of 
cotton  to  the  acre,  and  very  little  will  produce  less  than  a  half 
bale.  And  in  the  grain  region,  between  twenty  and  thirty  bushels 
of  wheat  are  raised,  and  very  often  much  more. 

It  will  readily  be  perceived,  that  no  single  tracl^ could  with  any 
convenience  do  the  business  that  will  be  off'ered  when  this  country 
shall  be  peopled  and  cultivated  like  some  of  the  older  States  ;  and 
population  is  only  waiting  for  the  road  to  be  built.  The  soil  will 
be  quickly  occupied  when  its  products  can  find  a  way  to  market. 
The  managers  of  this  road  arc  assured,  from  all  the  lights  before 
them,  that  the  receipts  per  mile  will  be  quadrupled  over  what 
they  now  are,  so  soon  as  they  can  add  one  hundred  miles  to  that 
now  built.  That  length  of  road  will  reach  the  grain  region  and 
penetrate  it,  and  aff*ord  an  outlet  for  a  production  which  would 
then  be  enhanced  a  thousand  fold. 

Reference  is  requested  to  the  statement  of  receipts  during  the 
last  twelve  months,  as  a  slight  indication  of  what  might  be  expected 
when  one  hundred  miles  more  shall  be  added.  It  is  believed  that 
every  additional  fifty  miles  will  increase  per  mile  the  receipts  in 


arithmetical  progression,  as  it  will  open  up  to  market,  regions  that 
now  produce  only  subsistence,  because  a  surplus  will  not  pay  ox- 
wagon  transportation. 

The  portion  of  the  State  under  consideration  is  healthy  and 
elevated ,  in  summer  fanned  by  the  breezes  of  the  Gulf ;  and 
where  the  white  man  can  labor  under  a  vertical  sun,  without  in- 
convenience. 

The  company  owes  an  inconsiderable  floating  debt  that  can  be  /. 
provided  for  at  any  time.    The  only  debt  of  any  importance  being  '  ^  '^  ^  \/ 
its  bonds  having  25  years  to  run,  and  bearing  7  percent,  interest,  ^ 
payable  in  gold  semi-annually.  ^  Av-J? 

There  is  but  little  surplus  capital  in  the  State,  and  the  company    ^  - 
has  to  apply  for  money  to  extend  the  road  where  it  is  cheaper 
than  at  home.    They  offer  a  liberal  interest  and  ample  security,  as 
will  be  shown  by  reference  to  the  deed  of  trust  securing  the  Bonds, 
printed  herewith. 

The  following  notice  of  the  road  is  taken  from  a  recent  publi- 
cation by  a  disinterested  correspondent,  and  it  is  reproduced  here 
because  of  its  truthfulness  and  justness  of  expression  : 

"  The  Houston  and  Texas  Central  Eailway,  extending  in  a 
^'  north-westerly  direction  from  Houston,  fifty  miles  to  Hempstead, 
^'  in  the  valley  of  the  Brazos  river ,  thence  in  a  line,  a  general 
"  course  of  which  is  due  north,  for  upwards  of  three  hundred 
"  miles  to  Preston,  on  Red  River,  near  the  34°  of  north  latitude  ; 
'Hhus  passing  centrally  for  three  hundred  and  fifty  miles  through 

the  richest  agricultural  valleys  in  the  world — as  there  is  proba- 
^'bly  elsewhere  no  country  in  which  a  line  of  the  same  length 

could  be  located  to  command  so  vast  an  area  of  fertile  country  as 
^' this  does,  a  country  which  has  been  heretofore  land-locked,  as 

none  of  the  numerous  streams  which  intersect  or  border  it,  give 
"  any  certain  or  reliable  facilities  for  navigation  or  transportation 
^'  of  the  products  of  the  soil  to  market.  This  railway  will  tra- 
^'  verse  five  parallels  of  latitude,  intersecting  that  vast  wheat  re- 

gion  south  of  Red  River,  which  is  the  source  of  untold  wealth  to 
^'the  industrious  immigrants  to  Northern  Texas.    On  the  centre  of  ' 

this  line  are  some  of  the  most  productive  cotton  lands  in  Amer- 

ica,  also  pasturage  for  horses,  cattle  and  sheep  in  unlimited  num- 


^bers.    The  uplands  produce  cotton,  and  the  alluvial  bottoms  of 

*  the  rivers,  cotton  and  sugar  cane.  No  line  of  road  in  America 
^  can  command  such  a  variety  of  climate,  products  and  soil,  as 
^  this,  as  it  will  afford  means  of  transportation  to  a  country  ex- 
'  tending  from  Kansas,  at  the  North,  to  the  Gulf  of  Mexico,  at  the 
'  South ;  opening  up  an  easy  and  rapid  transit  to  market  for  the 
'  present  population,  and  constituting  a  great  avenue,  through 
^  which  thousands  of  the  honest,  hardy  and  industrious  immi- 
^  grants  from  the  older  States  of  the  Union  and  Europe,  will  pour 
^  in  upon  this  Egypt  of  our  continent,  to  seek  and  find  new  homes 
'  for  themselves,  and  wealth  and  independence  for  their  posterity. 
'  This  company  has  eighty  miles  of  its  railway  completed  and  in 

*  active  operation,  and  is  rapidly  pushing  forward  its  works  to 
'  final  completion/' 


CHARTER 


OF  THE 


An  Act  to  establish  the  Galveston  <^  Red  River  Railway  Company. 

Sec.  1.  Be  it  enacted  hy  the  Legislature  of  the  State  of  Texas^ 
That  a  body  politic  and  corporate  be,  and  the  same  is  hereby  cre- 
ated and  established,  under  the  name  and  style  of  the  "Galveston 
and  Red  River  Railway  Company/^  with  the  capacity  to  make 
contracts;  to  have  succession  and  a  common  seal;  to  make  by- 
laws for  its  government,  and  in  its  said  corporate  name  to  sue  and 
be  sued,  to  grant  and  to  receive,  and  generally  to  do  and  perform 
all  such  acts  and  things  as  may  be  necessary  and  proper  for,  or 
incident  to,  the  fulfillment  of  its  obligations,  or  the  maintenance 
of  its  rights  under  this  Act,  and  consistent  with  the  provisions  of 
the  Constitution  of  this  State. 

Sec.  2.  That  the  said  Company  be,  and  hereby  is  invested  with 
the  right  of  making,  owning  and  maintaining  a  Railway  from  such 
point  on  Galveston  Bay,  or  its  contiguous  waters,  to  such  point  on 
Red  River,  between  the  eastern  boundary  line  of  Texas  and  Coffee's 
station,  as  the  said  Company  may  deem  most  suitable,  with  the 
privilege  of  making,  owning  and  maintaining  such  branches  to  the 
Railway,  as  they  may  deem  expedient. 

Sec.  3.  That  Ebenezer  Allen,  and  such  other  persons  as  he  may 
associate  with  for  the  purpose,  are  hereby  appointed  commissioners, 
and  invested  with  the  right  and  privilege  of  forming  and  organizing 
the  said  Company,  of  obtaining  subscriptions  to  the  capital  stock, 


8 


iind  distributing  the  shares  thereof;  and  generally  of  taking  such 
lawful  measures  to  secure  the  effectual  organization  and  successful 
operation  of  said  Company,  as  they  may  deem  expedient. 
Approved,  March  11,  1848. 


An  Act^  Supplemental  to  An  Act  to  establish  the  Galveston  and 
Red  Rive)'  Railioay  Company ^ 

Sec.  1.  Be  it  enacted  hy  the  Legislature  of  the  State  of  Texas 
That  all  portions  of  the  Act  to  establish  the  Galveston  and  Red 
River  Railway  Company,  approved  the  11th  of  March,  1848,  con- 
tained in  the  4th  section  and  all  the  subsequent  sections  thereof, 
be,  and  the  same  is  hereby  repealed ;  and  whereas,  it  is  desirable 
to  preserve  uniformity  in  the  several  acts  establishing  Railway 
Companies  passed  by  this  Legislature,  the  following  provisions  are 
hereby  adopted,  at  the  instance  of  the  commissioner  named  in  the 
said  original  Act,  for  the  government,  formation  and  observance  of 
the  Company  thereby  established. 

Sec.  2.  That  the  meetings  of  the  commissioners  provided  for 
by  this  Act,  and  the  said  original  Act,  may  be  held  at  such  times 
and  places  as  they  may  appoint;  and,  at  said  meetings,  the  com- 
missioners may  act  in  person  or  by  proxy. 

Sec.  3.  The  capital  stock  of  said  Company  to  consist  of  all  its 
property,  real  and  personal,  franchises  and  rights  of  property, 
shall  be  divided  into  shares  of  one  hundred  dollars  each,  each 
share  entitling  the  owner  thereof  to  one  vote,  by  himself  or  proxy, 
at  all  meetings  of  said  Company.  That  said  shares  shall  be  deemed 
personal  estate,  and  shall  be  transferable  by  any  conveyance  in 
writing,  recorded  by  the  Treasurer  in  the  books  kept  by  him  at 
his  office,  or  in  such  other  manner  as  the  by-laws  of  said  Company 
shall  provide. 

Sec.  4.  The  immediate  government  and  direction  of  the  affairs 
of  said  Company  shall  be  vested  in  a  Board  of  not  less  than  six 
I)ire9tors,  who  shall  elect  one  of  their  own  number  as  President  of 


9 


said  Company.  No  person  shall  be  eligible  to  the  office  of  Director 
unless  an  owner  or  subscriber  of  at  least  five  shares  of  the  stock  , 
of  said  Company ;  the  Directors  shall  have  the  power  to  fill  any 
vacancy  that  may  occur  in  said  Board  from  non-election,  death  or 
otherwise,  and  may  appoint  a  Secretary,  Treasurer,  and  such  other 
ofiScers  and  agents  as  they  may  consider  necessary,  and  prescribe 
and  require  bonds  for  the  faithful  performance  of  their  duties ; 
they  may,  if  not  otherwise  provided  by  th%  by-laws,  determine  the 
manner  of  conducting  all  meetings,  the  number  of  members  that 
shall  constitute  a  quorum,  and  to  do,  or  cause  to  be  done,  all  other 
lawful  matters  and  things  which  they  may  deem  necessary  and 
proper,  in  conducting  the  matters  of  the  Company.  They  shall 
keep,  or  cause  to  be  kept,  accurate  records  of  all  meetings  of  the 
Directors  and  Company,  and  accurate  books  of  accounts  of  the 
receipts  and  expenditures  of  the  Company,  and  all  other  books 
necessary  and  proper  to  be  kept  by  the  Company,  which  shall  be 
open  to  the  inspection  of  the  stockholders ;  a  majority  of  the 
Board  of  Directors  shall  have  the  authority  of  a  full  Board,  and 
all  conveyances  and  contracts  in  writing,  executed  by  the  President, 
and  countersigned  by  the  Secretar}^,  or  any  other  officer  or  person 
authorized  by  the  Directors,  under  the  seal  of  the  Company, 
and  in  pursuance  of  a  vote  of  said  Directors,  shall  be  valid  and 
binding. 

Sec.  5.  The  shares  may  be  disposed  of,  and  books  opened  for 
subscriptions  thereto,  in  such  manner  and  on  such  terms  as  said 
commissioners  shall  determine  will  be  best  for  the  interest  of  said 
Company;  and  any  agreement  in  writing,  by  which  any  person 
shall  become  a  subscriber  to  the  capital  stock  of  said  Company, 
may  be  enforced  against  him  according  to  its  terms ;  and  if  any 
subscriber  shall  fail  to  pay  any  amount  due  upon  shares  subscribed 
by  him,  according  to  the  terms  of  his  subscription,  the  Directors 
may  sell  at  auction  and  transfer  to  the  purchaser  the  shares  of 
such  delinquent ;  and  if  the  proceeds  of  sale  shall  not  be  sufficient 
to  pay  the  amount  due  on  said  subscription,  with  the  interest  and 
charges,  such  delinquent  shall  be  held  liable  to  the  Company  for 
the  deficiency;  and  if  the  proceeds  shall  exceed  the  amount  so 
due,  with  interest  and  charges,  said  delinquent  shall  be  entitled  to 
the  surplus. 


10 


Sec.  6.  It  shall  be  lawful  for  the  Company  to  enter  upon  and 
purchase,  and  otherwise  take  and  hold,  any  lands  necessary  for  the 
purpose  of  establishing  and  constructing  said  Railway,  with  all 
necessary  depots  and  other  buildings ;  and  if  they  shall  not  be 
able  to  obtain  said  lands  by  agreement  with  the  owner  thereof, 
they  shall  pay  therefor  such  compensation  as  shall  be  determined 
in  the  manner  provided  by  the  following  section ;  provided,  that 
the  land  so  taken  for  the*  road-bed  shall  not  exceed  two  hundred 
feet  in  width,  and  for  depots  and  other  buildings  only  such  further 
width  as  shall  be  needed  for  such  purposes. 

Sec.  7,  Any  person,  when  land  has  been  taken  as  aforesaid, 
without  agreement  or  satisfactory  compensation,  may  apply  to  the 
District  Court  of  the  county  in  which  said  land  is  situated,  for  the 
appointment  of,  and  said  Court  shall  thereupon  appoint,  three  dis- 
interested freeholders  of  the  county,  who  shall  appoint  a  time  and 
place  to  hear  the  applicant  and  the  Company,  to  whom  shall  be  given, 
by  said  freeholders,  reasonable  notice  of  the  said  time  and  place, 
and  said  freeholders  shall,  after  being  sworn,  and  after  due  hearing 
of  the  parties,  determine  the  amount  of  compensation,  if  any,  to 
which  the  applicant  may  be  entitled,  and  to  make  return  of  their 
award  to  the  next  succeeding  term  of  said  Court;  and  said  award, 
if  not  rejected  by  said  Court  for  sufficient  cause,  then  shown,  shall 
be  entered  up  as  the  judgment  of  said  Court.  In  determining  the 
({uestion  of  compensation,  said  freeholders  shall  be  governed  by  the 
actual  value  of  the  land  at  the  time  it  was  taken,  taking  into  con- 
sideration the  benefits  or  injury  done  to  other  lands  and  property 
of  the  owner,  by  the  establishment  of  said  Railway ;  and  if  the 
amount  of  compensation  awarded  by  said  freeholders  shall  not 
exceed  the  amount  offered  by  said  Company  to  the  owner,  prior  to 
said  application  to  the  Court,  the  applicant  shall  pay  the  cost  of 
the  proceedings ;  otherwise  the  Company  shall  pay  the  same. 

Sec.  8.  It  shall  be  the  duty  of  said  Company,  whenever  any 
State  or  county  road,  now  by  law  established,  shall  be  crossed  by 
the  track  of  said  railway,  to  make,  and  keep  in  repair,  good  and 
sufiicient  causeways  and  crossings ;  and  in  all  cases  where  any 
person  who  shall  own  lands  on  both  sides  of  said  Railway,  and 
there  shall  be  no  other  convenient  access  from  one  part  to  the 


11 


other,  such  owner  shall  have  the  right  of  passage,  free  of  cost,  at 
all  reasonable  times,  across  the  track  of  said  railway. 

Sec.  9.  This  Company  is  hereby  required,  at  all  reasonable 
times,  and  for  a  reasonable  compensation,  to  draw  over  their  road 
the  passengers,  merchandise  and  cars  of  any  other  railroad  corpo- 
ration which  has  been,  or  hereafter  may  be,  authorized  by  the  Leg- 
islature to  enter  with  their  Railroad,  and  connect  with  the  Rail- 
road of  this  Company ;  and  if  the  respective  Companies  shall  be 
unable  to  agree  upon  the  compensation  aforesaid,  it  shall  be  the 
duty  of  the  President  of  each  Company  to  select,  each,  one  man  as 
a  commissioner,  and  the  two  coriimissioners  so  selected,  shall  choose 
a  third  in  case  of  disagreement,  neither  of  whom  shall  be  a  stock- 
holder in  either  road,  or  interested  therein,  and  they  shall  fix  the 
rates,  which  shall  not  be  changed  for  one  year  from  the  time  of 
going  into  effect.  The  said  commissioners  shall  also  fix  the  stated 
periods  at  which  said  cars  are  to  be  drawn  as  aforesaid,  having 
reference  to  the  convenience  and  interests  of  said  corporations  and 
the  public,  who  will  be  accommodated  thereby.  The  right  or 
power  is  specially  conferred  on  this  said  Company  to  connect  and 
contract  with  any  Railroad  Company  chartered  by  this  State  for 
the  performance  of  like  transport ;  and  in  case  of  disagreement 
between  said  Companies,  the  same  shall  be  referred  and  settled  as 
aforesaid  ;  and  be  binding  for  one  year,  as  aforesaid. 

Sec.  10.  That  the  said  Company  may  acquire  real  estate  by  gift 
or  purchase,  and  that  such  commissioners^  hereinbefore  mentioned 
shall  have  full  authority  to  solicit  and  receive  subscriptions  and 
conveyances  of  land  to  said  Company,  until  the  time  fixed  for  the 
first  meeting  of  the  commissioners,  which  authority  may  be  ex- 
tended by  said  meeting;  which  land,  so  obtained,  shall  be  alienated 
by  said  Company  in  the  following  manner:  one-fourth  in  six  years, 
the  one-fourth  in  eight  years,  the  one-fourth  in  ten  years,  and  the 
other  fourth  in  twelve  years,  from  the  time  the  same  was  acquired. 

Sec.  11.  If  the  track  of  this  Railway  shall  cross  any  navigable 
stream,  it  shall  do  it  in  such  way  as  not  to  obstruct  its  navi- 
gation. 

Sec.  12.  Said  Company  shall  have  the  right  to  demand  and 
receive  such  rates  and  prices  for  the  transportation  of  passengers 


12 


and  freight;  as  they  may  think  proper  to  establish,  not  to  exceed 
five  cents  per  mile  for  passengers,  and  fifty  cents  per  hundred 
pounds  for  freight,  for  every  hundred  miles  the  same  may  be 
carried. 

Sec.  13.  If  any  person  shall  wilfully  injure  or  obstruct  said 
Railway  or  its  property,  such  person  may  be  punished,  when 
prosecuted  by  indictment  for  said  off'ence  in  due  course  of  law, 
and  also  liable  to  action  by  said  Company,  or  any  person  what- 
ever who  may  sufi'er  in  person  or  property  from  said  wilful  obstruc- 
tion, for  the  amount  of  damages  occasioned  thereby. 

Sec.  14.  There  shall  be  granted  to  said  Company,  eight  sections 
of  land,  of  six  hundred  and  forty  acres  each,  for  every  mile  of 
Railway  actually  completed  by  them,  and  ready  for  use;  and,  upon 
application  of  the  President  of  the  Company,  or  any  duly  author- 
ized agent  thereof,  stating  that  any  section  of  five  miles,  or  more, 
of  said  Railway  has  been  completed,  and  is  ready  for  use,  it  shall 
be  the  duty  of  the  Comptroller  of  Public  Accounts  to  require  the 
State  Engineer,  or  a  Commissioner  to  be  appointed  by  the  Gov- 
ernor, to  examine  said  Railway,  and  upon  his  certificate  that  said 
section  of  said  Railway  has  been  completed  in  a  good  and  substan- 
tial manner,  and  is  ready  for  use,  the  Comptroller  shall  give  infor- 
mation of  that  fact  to  the  Commissioner  of  the  General  Land 
Office,  whose  duty  it  shall  be  to  issue  to  said  Company  land  cer- 
tificates to  the  amount  of  eight  sections  of  land,  ot  six  hundred 
and  forty  acres  each,  for  each  and  every  mile  of  Railway  thus 
completed  and  ready  for  use ;  such  certificates  shall  be  for  six 
hundred  and  forty  acres  each,  and  shall  be  located  upon  any 
unappropriated  public  domain  in  the  State  of  Texas,  within 
twelve  months  from  the  issuing  thereof,  which  date  shall  appear 
upon  the  face  of  each  certificate  ;  and  upon  the  return  of  the  field- 
Lotes  of  any  survey,  made  by  virtue  of  any  certificate  thus  issued, 
it  shall  be  the  duty  of  the  Commissioner  of  the  General  Land 
Office  to  issue  patents  to  said  Company  in  their  corporate  name; 
one-fourth  of  which  said  land  thus  patented  shall  be  alienated  by 
the  Company  in  six  years,  one-fourth  in  eight  years,  one-fourth  in 
ten  years,  and  the  other  fourth  in  twelve  years ;  so  that  the  whole 


13 


of  the  lands  thus  granted  shal^pass  from  the  hands  of  the  Com- 
pany within  twelve  years  from  the  date  of  patents  thus  issued. 

Sec.  15.  Said  Company  shall  be  required  to  have  a  good  and 
sufficient  brake  upon  the  hindmost  car  in  all  trains  transporting 
passengers  or  merchandise,  and  also  permanently  stationed  there, 
a  trusty  and  skillful  brakeman,  under  a  penalty  of  not  exceeding 
the  sum  of  one  hundred  dollars  for  each  offence,  to  be  recovered 
in  any  court  of  competent  jurisdiction,  for  the  benefit  of  the  State  ; 
and  said  Company  shall  cause  to  be  placed  on  each  locomotive 
engine  passing  over  the  road,  a  bell  of  the  weight  of  at  least 
thirty-five  pounds,  or  a  steam  whistle,  and  the  said  bell  shall  be 
rung,  or  the  whistle  blown,  at  a  distance  of  at  least  eighty  rods 
from  the  place  of  crossing  any  highway  or  turnpike,  and  kept 
ringing  or  blowing  until  the  engine  has  passed  or  stopped.  Said 
Company  shall  be  required  to  construct  their  railroad  with  good  T 
or  U  iron  rails.  Provided,  that  -  no  land  shall  be  donated  unless 
the  Company  shall  actually  commence  their  road  within  two 
years,  and  actually  complete  and  finish  at  least  ten  miles  within 
three  years. 

Sec.  16.  Nothing  in  this  act  shall  be  so  construed  as  to  confer 
banking  privileges  or  powers  of  any  kind  whatever. 

Sec.  17.  If  said  Railway  shall  not  be 'commenced  within  five 
years  from  the  passage  of  this  act,  and  at  least  twenty  miles  thereof 
are  not  completed  within  six  years,  then  this  charter  shall  be  null 
and  void.  And  it  is  hereby  provided  and  declared  that  it  shall  be 
lawful  for  any  other  Eailway,  hereafter  to  be  constructed,  to  cross 
the  said  Eailway  or  any  branch  thereof,  or  to  connect  with  any 
point  therewith. 

Sec.  18.  The  said  Company  shall  have  the  right  to  take  and 
holS  as  much  of  the  public  land,  not  exceeding  two  hundred  feet 
wide,  as  the  said  Railway,  or  any  of  its  branches  may  pass  through, 
for  the  track  thereof,  and  such  additional  width  as  may  be  abso- 
lutely necessary  for  any  depot  or  other  work,  for  the  purpose  -of 
the  Railway,  that  the  Company  may  deem  proper  to  establish;  and 
in  all  cases  where  such  Railway,  or  a  branch  thereof,  shall  pass 
through  any  public  lands,  all  such  lands,  to  the  depth  of  three 
miles  from  the  exterior  line  of  the  track  on  each  side  thereof  shall 


14 


be,  and:  are  hereby  reserved  to  the  State  from  and  after  the  time 
such  track  shall  be  fixed  or  de^gnated  by  survey,  reconnoisance 
or  otherwise ;  and  the  said  lands,  as  far  as  the  road  is  constructed, 
shall  be  divided  into  sections  fronting  one  mile  each  on  the  road, 
which  sections  shall  be  numbered,  and  the  corners  of  each  section 
on  the  road  plainly  marked ;  and  of  those  reserved  lands,  the  Com- 
pany shall  have  the  right,  by  virtue  of  any  of  their  certificates 
issued  in  accordance  with  the  provisions  of  this  act,  to  cause  to  be 
located,  surveyed  and  patented  for  their  use,  each  alternate  sec- 
tion, such  section  in  each  instance  embracing  a  tract  of  land  front- 
ing one  mile  on  said  road,  and  extending  back  three  miles,  pre- 
serving an  equal  width;  and  the  remaining  sections  shall  continue 
the  property  of  the  State  until  disposed  of  by  the  Legislature. 
Approved,  February  11,  1852. 


An  Act  for  the  Relief  of  the  Galveston      Red  River  Railway 
Company^  Approved  January  23c?,  1856. 

Sec.  4.  That  said  Company  is  authorized  to  borrow  money  from 
time  to  time,  for  the  copstruction  of  their  Railway;  and  to  secure 
such  loan  by  pledging  and  mortgaging  the  property,  both  real, 
personal  and  mixed,  of  said  Company,  and  to  issue  bonds  with 
interest  warrants  annexed,  and  payable  at  such  time  and  place  as 
the  Directors  may  deem  proper.* 


An  Act  Amendatory  of  and  Supplementary  to^  an  Act  to  establish 
the  Gcdveston  dh  Red  River  Railway  Company,  and 
the  several  Acts  Supplemental  thereto. 

Section  1.  Be  it  enacted  hy  the  Legislature  of  the  State  of 
Texas,  That  the  Galveston  and  Eed  River  Railway  Company  may 
change  its  name  to  that  of  the  Houston  and  Texas  Central  Rail- 


*  N.  15. — The  b.'ilaiico  of  the  above  jict  relates  to  mutters  in  tlie  past  not  pertinent  to  any 
existing;  factor  condition  of  the  Company. 


15 


way  Company,  and  by  that  name  may  sue  and  be  sued,  grant  and 
receive,  and  generally  do  and  perform  all  such  acts  and  things  as 
they  could  legally  do  under  their  present  name  ;  and  all  acts  here* 
tofore  done  in  said  name  shall  be  as  binding  upon  said  Company 
and  in  favor  of  said  Company  upon  third  parties  in  said  new  name 
as  they  were  under  the  first  name ;  and  said  change  of  name  shall 
in  no  way  forfeit  or  change  any  rights  or  liabilities  now  existing 
between  said  Company  and  State  or  third  parties ;  provided  that 
this  act  shall  first  be  accepted  by  the  President  and  Directors  of 
said  Company,  and  notice  of  said  acceptance  shall  be  filed  in  the 
office  of  the  Secretary  of  State. 

Sec.  2.  That  said  Company  shall  have  the  right  to  cross  any 
navigable  stream,  by  ferry,  bridge  or  otherwise,  and  shall  have  the 
right  to  acquire  and  exercise  such  ferry  privileges  as  may  be  nec- 
essary for  its  business,  and  said  road  crossing  any  such  streams, 
by  a  good  and  convenient  ferry,  shall  be  considered  as  continuous 
as  if  crossing  upon  a  bridge  ;  provided  the  same  shall  not  obstruct 
the  navigation  of  any  such  stream. 

Sec.  3.  That  a  failure  to  complete  the  second  section  of  twenty- 
five  miles  of  road  of  said  Company,  within  one  year  after  the  con- 
struction of  the  first  section,  shall  not  work  a  discontinuance  as  to 
said  Company  of  the  benefits  of  the  Act  entitled  an  Act  to  en- 
courage, the  construction  of  Railroads  in  Texas  by  donations  of 
lands,^^  or  any  other  general  or  special  laws  relative  to  railroads, 
if  said  Company  shall  have  completed  their  second  and  third  sec- 
tions, amounting  to  at  least  fifty  miles,  at  the  expiration  of  two 
years  after  the  construction  of  said  first  section. 

Sec.  4.  That  section  twelfth  of  the  Act  supplementary  to  the 
Act  to  establish  the  Galveston  and  Red  River  Railway  Company, 
passed  February,  eighteen  hundred  and  fifty-two,  be,  and  the  same 
is  hereby  amended  so  as  to  read  as  follows :  Said  Company  shall 
have  the  right  to  demand  and  receive  such  rates  and  prices  for  the 
transportation  of  passengers  and  freight,  as  they  think  proper  to 
establish,  not  to  exceed  five  cents  per  mile  for  passengers,  and 
fifty  cents  per  hundred,  and  twenty -five  cents  per  foot  for  freight, 
per  every  hundred  miles  the  same  may  be  carried. 


16 

Sec.  5.  That  this  act  take  effect  and  be  in  force  from  and  after 
its  passage. 

Passed,  September  1st,  1856. 


An  Act  Grantincj  Lands  to  the  Houston  &  Texas    Central  Rail- 
10 ay  Company, 

Section  1.  Be  it  enacted  hy  the  Legislature  of  the  State  of 
Texas^  That  the  Houston  and  Texas  Central  Railway  Company, 
shall  be  entitled  to  receive  from  the  State,  a  grant  of  sixteen  sec- 
tions of  land,  of  six  hundred  and  forty  acres  each,  for  every  mile 
of  road  it  has  constructed,  or  may  construct  and  put  in  running 
order,  "in  accordance  with  the  provisions  of  the  charter  of  said 
Railroad  Company/^  provided,  that  the  lands  heretofore  drawn  by 
said  Company  by  virtue  of  "an  Act  to  encourage  the  construction 
of  Railroads  in  Texas  by  donation  of  lands,  approved,  January 
30th,  1864,^^  be  deducted  from  the  amount  of  lands  granted  here- 
by; and  provided  further,  that  the  land  certificates  heretofore 
issued  to  this  Company  on  the  three  first  sections  of  their  road, 
by  virtue  of  the  Act  aforesaid,  be  included  in  the  terms,  benefits 
and  conditions  qf  this  Act,  as  if  issued  by  virtue  of  its  provisions  ; 
and  further  provided,  that  said  Company  shall  construct,  and  put 
in  running  order,  a  section  of  twenty-five  miles  of  additional  road 
to  that  now  built,  within  one  year  from  January  1st,  1867,  or 
fifty  miles  within  two  years  from  that  date ;  and  such  grant  of  land 
shall  be  discontinued  when  said  Company  shall  fail  to  construct 
and  complete  at  least  twenty-five  miles  of  the  road  contemplated 
by  their  charter,  each  year  after  the  construction  of  said  first  men- 
tioned fifty  miles  of  road;  provided  that  said  road  shall  be  put  in 
running  order  to  Bryan  Station,  and  cars  run  regularly  thereon 
by  the  1st  day  of  September,  1867. 

Sec.  2.  Whenever  said  Company  shall  have  completed,  and  put 
in  running  order,  a  section  of  twenty-five  miles  or  more  of  its 
road  beyond  the  point  which  land  has  been  granted  and  drawn. 


17 


they  may  give  notice  of  the  same  to  the  Governor,  whose  duty  it 
shall  be  to  appoint  some  skillful  engineer  to  examine  said  section 
of  the  road,  and  if  upon  the  report  of  said  engineer  under  oath,  it 
shall  appear  that  said  road  has  been  constructed  in  accordance 
with  the  provisions  of  its  charter,  and  of  the  general  laws  of  the 
State  in  force  at  that  time,  regulating  railroads,  thereupon  it  shall 
be  the  duty  of  the  Commissioner  of  the  General  Land  Office  to 
issuoto  said  Company,  certificates  of  six  hundred  and  forty  acres 
each,  equal  to  sixteen  sections  per  mile  of  road  so  completed ;  there- 
upon said  Company  may  apply  to  the  District  Surveyor  of  any 
Land  District  to  survey  any  quantity  of  vacant  lands  subject  to 
location  and  entry  in  such  district,  not  to  exceed  twice  the  quan- 
tity of  certificates  so  issued,  and  may  caused  to  be  surveyed  the 
land  so  designated,  into  sections  of  six  hundred  and  forty  acres 
each,  or  half  sections  of  three  hundred  and  twenty  acres  each, 
which  surveys  shall  be  delineated  upon  a  map  or  maps,  the  even 
and  odd  sections,  and  half  sections,  and  being  differently  colored, 
and  regularly  numbered  from  one  upward  to  the  full  number  con- 
tained in  the  block,  and  field  notes  of  said  survey,  and  map  or  maps, 
shall  be  by  said  company  deposited  with  the  Commissioner  of  the 
General  Land  Office,  and  it  shall  be  the  duty  of  said  Commissioner 
to  issue  to  said  Company  patents  for  the  odd  sections  and  half  sec- 
tions of  said  surveys;  and  all  the  alternate  or  even  sections  and 
half  sections  shall  be  reserved  to  the  use  of  the  State,  until  ap- 
propriated by  law,  and  not  liable  to  location,  entrance  or  pre- 
emption privileges. 

Sec.  3.  That  surveys  under  the  provisions  of  this  Act,  shall  be 
made  by  Deputies  and  District  vSurveyors  of  the  District  in  which 
the  land  is  situated,  and  the  field  notes  shall  be  recorded  in  such 
District,  and  returned  to  the  General  Land  Office,  as  other  sur- 
veys;  and  said  Railroad  Company  shall  construct  their  road  in 
the  line  heretofore  prescribed  by  an  Act  for  the  relief  of  the 
Houston  and  Texas  Central  Railway  Company,  approved  Febru- 
ary 8th,  1861. 

Approved,  September  21st,  18GG. 


2 


18 


DEPARTMENT  OF  STATE,  ^ 
Austin,  Texas,  Sept.  22cl,  1866.  ) 

I  hereby  certify  the  above  to  be  a  true  and  correct  copy  of  the 
original,  now  on  file  in  my  department. 

In  testimony  whereof,  I  have  hereunto 
signed  my  name,  and  caused  the  seal  of  this 
Department  to  be  affixed  the  day  and  year 
first  above  written. 

Signed:  JOHN  A.  GEEEN, 


I, 


Seal. 


Secretary  of  State. 


B  Y  -  L  A.W  S. 


Article  I.  A  general  meeting  of  the  stockholders  of  this  Com- 
pany shall  be  held  annually,  at  its  office  in  the  City  of  Houston, 
on  the  first  Monday  of  May  of  each  year,  at  which  meetings  there 
shall  be  elected  nine  Directors,  who  shall  each  be  a  stockholder 
for  at  least  five  shares,  and  from  the  number  of  Directors,  a  Presi- 
dent and  Vice  President  shall  be  elected,  who  shall  constitute  a 
Board,  to  manage  and  conduct  the  affairs  of  the  Company  until 
the  next  annual  meeting,  and  shall  transact  such  other  business  as 
may  be  deemed  necessary  or  expedient  under  the  powers  vested  in 
the  Company  by  the  Charter  and  general  laws  regulating  Rail- 
road Companies.  The  President  and  Vice  President  to  be  chosen 
by  the  Directors. 

Art.  IL  Special  meetings  may  be  called  by  the  President, 
whenever  he  deems  it  necessary';  and  shall  be  called  by  him  when- 
ever requested  in  writing,  stating  the  object  of  the  call,  and  signed 
by  a  majority  of  the  Directors,  or  by  any  number  of  stockholders 
owning  not  less  than  one-fourth  of  the  shares  entitled  to  vote. 

Art.  Ill,  Notice  of  such  special  meeting,  distinctly  stating  the 
business  to  be  transacted  or  object  of  the  call,  and  the  time  and 
place  of  meeting,  shall  be  published  in  some  newspaper  printed  at 
Houston,  for  at  least  four  weeks. 

Art.  IV.  All  special  meetings  shall  be  held  at  the  Company^s 
office  in  Houston ;  and  no  other  business  shall  be  done  at  them, 
than  such  as  relates  directly  to  the  objects  stated  in  the  call  or 
notice. 

Art.  V.  Stockholders  owning,  or  representing  by  proxy,  at 
least  one-half  of  the  shares  entitled  to  vote,  must  be  present  to 


20 


constitute  any  meeting  of  the  Company,  whether  general  or  special. 

Art.  VL  All  meetings  may  be  adjourned  from  time  to  time; 
but  no  business  shall  be  done  at  an  adjourned  special  meeting, 
except  such  as  was  unfinished  at  the  last  adjournment. 

Art.  VII.  At  all  Company  meetings  each  stockholder,  accord- 
ing to  the  register  of  stock,  shall  be  entitled  to  one  vote  for  each 
share  owned  by  him,  which  votes  may  be  given  either  personally 
or  by  proxy,  authorized  by  writing  signed  by  the  stockholder,  but 
no  person  shall  act  as  proxy,  unless  he  be  himself  a  stockholder, 
and  unless,  also,  the  instrument  authorizing  him  to  act,  shall  have 
been  delivered  to  the  Secretary  to  be  noted  on  the  record. 

Art.  YIII.  All  questions  or  propositions  shall  be  decided  by  a 
majority  of  the  votes  of  stockholders  present  or  represented  bj 
proxy;  and,  in  the  event  of  a  tie,  then  the  President  of  the 
meeting  shall  be  entitled  to  give  the  casting  vote. 

Art.  IX.  The  President  elected  by  the  Company,  shall  preside 
at  all  meetings  of  the  Company,  and  of  the  Directors,  sign  all  cer- 
tificates of  stock  or  shares,  and  also  all  deeds  and  other  contarcts 
requiring  the  seal  of  the  Company,  and  generally  superintend  the 
affairs  of  the  Company,  and  discharge  of  their  duties  by  its  officers, 
recommend  measures  necessary  for  its  welfare,  and  also  perform 
such  other  duties  as  may  be  prescribed  by  the  Company,  or  by  the 
Directors  in  accordance  with  the  by-laws. 

Art.  X.  In  the  absence  of  the  President,  or  in  case  of  vacancy 
therein,  by  death  or  resignation,  the  Vice  President  shall  be,  and 
discharge  the  duties  of  the  President ;  and  in  case  of  vacancy 
occurring  in  both  offices,  then  the  Directors  shall  elect  a  President 
pro  tempore. 

Art.  XI.  A  Secretary  to  be  elected  by  the  Board  of  Directors, 
shall  also  be  the  Secretary  of  the  Company  ]  he  shall  attend  all 
meetings  of  the  Company  and  Directors,  and  keep  a  correct  record 
of  their  proceedings  in  a  well  bound  book  ;  he  shall  also  keep  the 
books  of  the  Company  ipid  of  the  Board,  register  all  shares  of 
stock  and  assignments  thereof,  and  note  in  his  record  all  proxies 
delivered  to  him,  countersign  all  certificates  of  stock  or  shares, 
and  all  deeds  and  contracts  requiring  the  seal  of  the  Company, 
keep  the  seal  and  affix  it  only  to  such  instruments  as  he  may  be 


21 


ordered  by  the  Board  of  Directors,  according  to  the  by-laws,  or  by 
the  Company  in  meeting,  and  perform  such  other  duties  as  may  be 
prescribed  for  him  by  the  Board  of  Directors.  In  the  absence  of 
the  Secretary  at  any  meeting,  a  Secretary  pro  tempore  may  be 
appointed. 

At  every  general  meeting,  and  also  at  special  meetings,  when 
the  call  or  notice  requires  it,  a  full  and  plain  report  of  all  the  acts 
and  proceedings  of  the  Directors  and  other  officers  of  the  Company, 
so  prepared  as  to  exhibit  a  fair,  full  and  distinct  account  of  the 
condition  of  the  affairs  of  the  Company,  shall  be  laid  before  the 
meeting  for  their  information  and  action  ;  it  shall  be  made  by  the 
President  and  Directors,  accompanied  with  reports  and  accounts 
of  each  officer. 

All  accounts  of  the  Company  shall  be  required  by  the  Directors 
to  be  balanced  at  least  quarterly,  and  thereupon  also  an  exact 
balance  sheet  shall  be  made  up  by  the  Secretary  and  other  officers, 
which  shall  exhibit  a  true  and  full  statement  of  the  capital  stock, 
credit,  and  property  of  every  description,  belonging  to  the  Com- 
pany, and  an  accurate  statement  of  the  amount  and  character  of 
the  liabilities  and  a  distinct  view  of  the  profit  or  loss,  which  may 
have  arisen  on  the  transactions  of  the  Company. 

The  seal  of  the  Company  shall  be  of  circular  form,  with  the 
words,  "Houston  and  Texas  Central  Bailway  Company in  a  circle, 
and  a  small  five  pointed  star  within  them )  it  shall  be  kept  by  the 
Secretary,  subject,  however,  to  the  control  of  the  President  and 
Directors. 

All  certificates  of  stocks  or  shares,  deeds  and  other  contracts 
requiring  the  use  of  the  seal  of  the  Company,  shall  be  signed  by 
the  President,  countersigned  by  the  Secretary,  and  authenticated 
with  the  seal  ]  but  no  sale  or  conveyance  of  any  property  of  the 
Company  shall  be  made  until  it  has  been  expressly  authorized  by 
vote  of  the  Board  of  Directors. 

The  certificates  for  shares  of  the  capital  stock  shall  be  numbered 
in  progression,  beginning  with  number  one,  each  certificate  shall 
be  designated  by  its  number,  and  shall  be  entered  in  a  book  called 
the  "Register  of  Stockholders,''  re-entered  therein  from  time  to 
time,  as  changes  may  occur  in  ownership,  or  certificates  issued, 


99 

with  the  Dames  of  the  stockholders,  their  places  of  residence,  and 
the  number  of  shares  to  which  each  is  entitled,  designating  each 
certificate  by  its  number. 

Each  stockholder  shall  be  entitled  to  a  certificate  of  stock  for 
each  share  belonging  to  him,  and  for  v/hich  full  payment  has  been 
made.    The  form  of  such  certificate  shall  be  as  follows  : 

The  Houston  and  Texas  Central  Railway  Company. 

NO.   — . 

It  is  Hereby  Certified,  that  is  the 

owner  of  .  shares,  number   ,  in  the  capital 

stock  of  the  Houston  and  Texas  Central  Eailway  Company,  estab- 
lished under  acts  of  incorporation  of  the  Legislature  of  the  State 
of  Texas.  This  Certificate  is  transferable  by  assignment  in  writing, 
signed  by  the  owner,  and  upon  surrender  of  the  Certificate  with 
such  assignment,  the  assignee  will  be  entitled  to  a  new  Certificate 
of  stock,  in  his  own  name. 

Witness  the  hands  of  the  President  and  Secretary,  and  the  seal 

of  said  Company,  at  their  office  in  Houston,  Texas,  this  

day  of  ,  x\.  D.,  18  

[l.  s.]   ,  President. 

 ,  Secretary. 

The  transfer  of  any  share  may  be  made  by  an  instrument  in 
writing,  signed  by  the  owner,  which  writing  may  be  endorsed  on 
the  certificate,  or  made  on  a  separate  paper.  The  assignee  must 
cause  his  transfer  to  be  presented  and  delivered  to  the  Secretary 
of  the  Company,  before  it  will  entitle  him  to  be  recognized  as  the 
owner,  and  upon  presentation  of  such  transfer,  the  Secretary  shall 
record  the  same  in  books  to  be  kept  for  that  purpose,  and  called 
•Ttegister  of  Transfers;  and  the  President  and  Secretary  shall 
issue  new  certificate  or  certificates,  to  the  assignee  as  he  may  be 
entitled,  unless  they  have  notice  or  good  information  of  fraud  or 
invalidity  of  such  transfer. 

The  "Eegister  of  Transfers"  shall  be  closed  three  days  before 


23 


each  annual  or  special  meeting,  and  no  assignee  of  shares  shall  be 
entitled  to  vote  b}-  virtue  thereof  at  such  meeting  unless  such 
assignment  has  been  presented  for  record  before  the  time  specified 
in  this  article. 

If  any  certificate  of  stock  shall  become  materially  damaged, 
upon  presentation  thereof  at  any  meeting  of  the  Directors  they 
may  order  it  to  be  cancelled,  and  thereupon  duplicate  thereof  shall 
be  given  to  the  owner.  If  any  certificate  be  lost  or  be  destroyed, 
then  upon  satisfactory  proof  thereof  to  the  Directors,  they  may 
order  a  duplicate  thereof  to  be  issued  to  the  owner,  on  such  terms 
as  may  be  reasonable  for  the  protection  of  the  Company. 

In  all  cases  of  the  issue  of  a  duplicate  or  substituted  certificate, 
due  entry  of  the  same  shall  be  made  in  the  Register  of  Stock- 
holders. 

Every  stockholder  shall  have  the  right,  during  business  hours, 
or  other  reasonable  times,  to  inspect  and  examine  all  records  of 
proceedings  of  the  Company  or  Directors,  and  also  the  accounts 
and  reports  made  at  any  time,  and  the  books  of  all  officers  of  the 
Company. 

The  Board  of  Directors  shall  exercise  all  powers  vested  in  the 
Company  by  the  Charter  and  general  laws  regulating  Railroad 
Corporations,  which  are  not  otherwise  delegated  by  the  By-Laws, 
or  restricted  by  them  at  regular  and  special  meetings. 

They  shall  hold  quarterly  meetings  at  the  office  of  the  Compa- 
ny, and  not  elsewhere,  on  the  second  Mondays  of  August,  Novem- 
ber, February  and  May  of  each  year. 

Special  meetings  may  be  called  by  the  President  when  he  deems 
it  necessary,  and  shall  be  called  by  him  whenever  requested  by 
two  (2)  Directors,  to  be  always  held  at  the  Company^s  office. 
Notice  of  special  meetings  shall  be  given  to  each  Director  by  the 
Secretary,  or  in  case  of  his  absence,  sickness  or  delay,  by  the 
President  or  any  two  Directors. 

Not  less  than  two  (2)  thirds  of  the  Directors  shall  constitute  a 
quorum  to  do  business,  and  the  Directors  can  only  act  and  vote  in 
person.  In  case  a  quorum  does  not  attend,  those  present  may 
adjourn  the  meeting  to  some  other  time. 

When  a  quorum  is  present,  all  the  powers  vested  in  the  Board 


24 


may  be  exercised  by  a  majority  vote  of  those  present,  except  to 
fill  a  vacancy  in  the  Board,  a  vote  of  two  (2)  thirds  of  those  re- 
maining in  the  office  shall  be  necessary.  Also  a  vote  of  two  (2) 
thirds  of  the  whole  number  shall  be  necessary  to  order  a  sale  of 
any  real  estate,  or  to  purchase  real  estate,  other  than  for  roadway 
or  construction  purposes. 

Also  that  a  vote  of  a  majority  of  the  whole  number  of  Directors 
shall  be  necessary  to  designate  the  line  or  route  of  the  road,  or  to 
alter  or  change  the  same  after  it  has  been  designated. 

The  Directors  shall  procure  suitable  books,  and  therein  cause 
proper  mi;iutes  to  be  made  of  all  their  proceedings,  and  records 
of  ail  appointments  and  contracts  made  by  them,  and  complete 
accounts  of  the  Company,  and  proceedings  of  all  Company  meet- 
ings, and  all  other  matters  which  they  may  deem  useful ;  which 
books,  at  all  reasonable  hours,  shall  be  open  for  the  inspection  of 
every  shareholder,  at  the  office  of  the  Company.  No  business 
shall  be  done  at  anj  meeting  of  the  Board  until  the  record  of  the 
preceeding  meeting  has  been  read  and  approved. 

The  Board  of  Directors  shall  have  power  to  appoint  a  Treasurer, 
Engineers,  Surveyors,  Auditors  and  Committees,  or  other  agents, 
and  to  prescribe  their  duties;  but  they  shall  not  appoint  any 
officer  except  such  as  are  absolutely  necessary  for  the  transaction 
of  business,  and  as  the  income  of  the  Company  will  pay  without 
incurring  debt. 

The  Directors  shall  fix  the  salaries  in  compensation  of  every 
officer  and  agent,  except  their  own,  and  may  remove  every  officer 
or  agent  appointed  by  them  at  pleasure. 

Every  officer  and  agent  shall  make  monthly  reports  to  the  Di- 
rectors or  the  Executive  Committee,  containing  a  true  and  perfect 
account  in  writing,  under  his  hand,  all  money  received  by  him  on 
account  of  the  Company,  and  stating  how,  to  w^hom,  and  for  what 
purposes  any  such  money  may  have  been  disbursed  or  handed 
over;  and  bhall  also  return  therewith  the  vouchers  for  such  dis- 
position of  the  money ;  and  sliall  pay  over  to  the  Directors  or 
such  officer  as  they  may  appoint,  all  money  or  balances  due  from 
him  to  the  Company. 


2 


Before  any  person  entrust^-' with  the  custody  or  control'  of 
money  or  credit  of  the  Company,  shall  enter  On  the  duties  of  his 
office  or  agency,  he  shallcive  good  and  sufficient  security  by  bond 
or  otherwise,  as  may>  satisfactory  to  at  least  two-thirds  of  the 
Directors,  and  app  oved  by  a  vote  entered  on  the  minutes  of  their 
proceedings. 

The  Directors  may  make  all  contracts  necessary  and  proper  for 
executing  the  pcwers  expressly  granted  them  by  the  Charter  or 
these  By-Laws,  and  not  restricted  by  them,  in  such  modes  and 
forms  as  they  miy  deem  proper  for  the  benefit  of  the  Company. 
But  they  shall  lOt  contract  or  agree  for  any  loan,  nor  incur  any 
debt  by  borrowing  money,  nor  agree  for,  nor  make  any  "  deed  of 
trust/'  "  mortgxge,''  or  other  lien,''  on  the  property  of  the  Com- 
pany, (except  loans  from  the  State  of  Texas)  without  being  ex- 
pressly autho.'ized  so  to  do  by  vote  of  the  Company  at  a  general 
or  special  meiting. 

The  Pres'dent  and  (3)  three  members  of  the  Board  of  Directors 
shall  constitute  an  Executive  Committee,  with  power  to  do  all 
things  required  for  the  interest  of  the  Company  in  the  interval 
between  the  meetings  of  the  Board,  subject,  however,  to  the  ap- 
proval of  the  Board,  to  which  they  shall  report  all  their  acts  in 
writing  at  each  meeting. 

The  Executive  Committee  shall  examine  and  audit  the  accounts 
of  the  Secretary,  Treasurer,  Superintendent,  and  all  other  officers, 
at  least  monthly,  and  report  thereon  to  the  Board  at  each  meeting  ; 
and  said  Committee  shall  have  power  to  suspend  any  officer  from 
his  functions  and  to  appoint  another  person  to  fill  the  vacancy, 
pro  tempore. 

All  committees  of  the  Board  shall  make  their  reports  in  writing, 
and  whenever  a  committee  shall  be  appointed,  the  Secretary  shall 
deliver  to  the  chairman  a  transcript  of  the  business  referred  to 
them. 

Dividends  may  be  declared  by  the  Directors  from  time  to  time 
fas  the  interest  of  the  stockholders  may  require;  and  shall  be  de- 
iclared  on  the  written  application  of  stockholders  owning  at  least 
dme-half  the  shares  fully  paid ;  but  in  no  case  shall  dividends  be 


26 


declared  unless  there  be  a  surplu;:  of  neat  profits  from  the  earn- 
ings of  the  road  on  hand,  and  then  to  he  paid  in  cash. 

These  By-Laws  may  be  altered,  amended  or  repealed,  in  whole 
or  in  part,  only  at  a  general  ''annual'^  meetl-qg  of  the  Company, 
and  after  notice  of  intention  to  propose  such  change  shall  have 
been  given  for  at  least  (30)  thirty  days  in  some  newspaper  pub- 
lished at  Houston. 

In  all  cases  of  a  failure  to  elect  Directors  at  the  annual  period 
for  doing  so,  the  old  Board  shall  hold  over  until  an  election  shall 
take  place. 


DEED  OF  TRUST. 


At  a  meeting  of  the  Directors  of  the  H.  &  T.  C.  R.  Co.,  held  at 
the  ofl&ce  of  the  Company,  on  the  20th  October,  1866,  the  follow- 
ing resolution  was  passed  : 

Whereas,  it  is  expedient  to  raise  funds  for  the  purpose  of  con- 
solidating the  debts  of 'the  Houston  and  Texas  Central  Eailway 
Company,  and  for  the  further  construction  of  its  road,  and 
whereas,  the  stockholders^  at  their  annual  meeting  on  the  seventh 
day  of  May,  A.  D.  1866,  passed  the  following  resolution,  viz  : 

"  That  the  Directors  be,  and  they  are  hereby,  authorized  and 
'powered  to  make  contracts  and  agreements  for  loans  for  any 
••amount,  not  exceeding  twenty-five  thousand  dollars  per  mile, 
'•upon  any  portion  or  the  entire  line  of  the  road  from  Houston  to 
"Red  River,  and  for  any  such  loans  to  make,  execute  and  nego- 
'^tiate  the  Bonds  of  the  Company,  bearing  such  interest  and  to 
•'mature  at  such  time  after  date,  for  such  amounts  as  to  them  may 
"seem  proper,  and  to  secure  the  same  by  Deed  of  Trust,  mortgages 
"or  other  liens  upon  all  or  any  portion  of  the  property  of  the 
"Company,  without  further  action  in  the  premises  by  the  stock- 
"holders/' 

Now,  in  pursuance  of  said  resolution,  be  it  resolved,  that  the 
President  and  Secretary  be,  and  are  hereby  authorized  to  have 
prepared  and  executed,  Bonds  to  the  amount  of  twenty  thousand 
dollars  per  mile,  on  the  entire  length  of  the  road  of  the  Company, 
built  and  to  be  built,  and  to  make,  execute  and  deliver  to  Shepherd 
Knapp  and  David  S.  Dodge,  as  the  Trustees,  a  Deed  of  Trust  to 
secure  the  same,  the  said  Bonds  and  Deed  of  Trust  to  bear  date 
July  1st,  1866,  and  to  be  in  substance  as  follows,  (which  Deed  of 
Trust  was  made,  executed  and  delivered  verbatim,  as  follows:) 


28 


This  Indenture,  made  tlie  first  day  of  July,  in  the  year 
One  Thousand  Eight  Hundred  and  Sixty-Six,  between  ^'The 
Houston  and  Texas  Central  Railway  Company,''  a  Corporation 
created  by  the  Legislature  of  the  State  of  Texas,  of  the  first  part, 
and  Shepherd  Knapp  and  David  S.  Dodge  of  the  City  of  New 
York,  in  the  State  of  New  York,  Trustees,  as  hereinafter  men- 
tioned, of  the  second  part,  witnesseth  : 

WhcreaSj  The  said  Houston  and  Texas  Central  Railway  Com- 
pany, formerly  known  as  the  Galveston  and  Red  River  Railway 
Company,  in  pursuance  of  An  Act  of  the  Legislature  of  the  State 
of  Texas,  entitled  ^-An  Act  to  establish  the  Galveston  and  Red 
River  Railway  Company,'^  passed  March  11th,  1848,  and  the 
several  acts  supplemental  thereto,  and  amendatory  thereof,  and 
particularly  An  Act  entitled  "An  Act  amendatory  and  supple- 
mental to  An  Act  to  establish  the  Galveston  and  Red  River  Rail- 
way Company  and  several  acts  supplemental  thereto,'^  passed  Sep- 
tember 1st,  1856,  by  which  last  mentioned  Act,  the  name  of  said 
Corporation  was  changed  and  declared  to  be  "The  Houston  and 
Texas  Central  Railway  Company,^'  and  which  Acts  declare  that 
said  Company  is  invested  with  the  right  of  making,  owning  and 
maintaining  a  Railway  from  such  point  on  Galveston  Bay,  or  its 
contiguous  waters,  to  such  point  on  Red  River,  between  the  East- 
ern boundary  line  of  Texas  and  Coffee's  Station,  as  the  said  Com- 
pany may  deem  most  suitable : 

And  Whereas,  By  An  Act  of  the  Legislature  of  the  State  of 
Texas,  approved  January  30th,  1854,  entitled  "An  Act  to  en- 
courage the  construction  of  Railroads  in  Texas,  by  donations  of 
lands, ^'  and  the  several  Acts  supplemental  thereto,  the  said  party 
of  the  first  part  is  entitled  to  receive,  amongst  other  lands,  by 
donation  from  the  State  of  Texas,  to  aid  in  the  construction  and 
equipment  of  its  railroad,  sixteen  sections  or  square  miles  of  land, 
of  the  public  domain  of  said  State,  equal  to  ten  thousand  two 
hundred  and  forty  acres  of  land,  for  each  and  every  mile  of  its 
Railway  built,  for  its  whole  length  of  about  three  hundred  and 
eighty  miles,  from  the  City  of  Houston,  or  the  tide  waters  of  Gal- 
veston Bay,  to  Red  River  : 

And  Whereas,  said  Railway  Company,  for  the  purpose  of  con- 


29 


solidating  its  debts  already  contracted,  and  to  raise  moaey  for 
prosecuting  the  further  construction  of  its  said  road  to  its  terminal 
point  on  Red  River,  has  determined  to  borrow  a  sum  of  money,  by 
virtue  of  these  presents,  not  exceeding  Twenty  Thousand  Dollars 
per  mile,  and  to  issue  its  Bonds  for  the  re-payment  of  the  moneys 
which  may  be  borrowed,  with  the  interest  thereon,  such  Bonds  to 
be  issued  on  the  road  already  built,  and  on  the  road  to  be  built, 
only  so  fast  as  the  same  shall  be  built,  and  not  in  advance  thereof, 
and  to  be  on  an  equality  so  far  as  regards  security  for  the  payment 
thereof,  notwithstanding  some  of  them  may  be  issued  after  this 
date,  and  at  different  times,  and  may  be  signed  by  officers  of  said 
Railway  Company,  who  may  be  the  successors  of  those  represent- 
ing said  Company  in  the  execution  of  these  presents,  and  issued 
by  the  Trustees  who  may  be  successors  to  those  to  whom  these 
presents  are  executed  and  delivered;  and  the  payment  of  said 
Bonds,  and  the  interest  to  become  due  thereon,  is  secured  as  here- 
inafter mentioned,  and  which  Bonds  are  substantially  in  form  as 
follows  : 

No   §1000. 

UNITED  STATES  OF  AMERICA, 

The  State  of  Texas. 

The  Houston  and  Texas  Central  Railway  Company,  seven  per 
cent.  Land  Grant  Sinking  Fund,  first  Mortgage,  Gold  bearing 
Bond,  secured  by  first  mortgage  on  ten  square  miles  of  land,  or  six 
thousand  four  hundred  acres  for  each  mile  of  road,  and  further 
secured  upon  the  whole  and  entire  line  of  said  Railway,  (construct- 
ed and  to  be  constructed,  commencing  at  the  City  of  Houston, 
aforesaid,  and  extending  to  Red  River,  and  upon  all  the  appurten- 
ances and  privileges,  chartered  rights  and  franchises  of  said 
Railway  Company.) 

This  Certifies  that  the  Houston  and  Texas  Central  Railway 
Company  acknowledges  itself  indebted  to  Shepherd  Knapp  and 
David  S.  Dodge,  or  bearer,  in  the  sum  of  one  thousand  dollars, 
gold  and  silver  money  of  the  United  States  of  America,  for  value 
received,  payable  in  the  City  of  New  York,  in  the  State  of  New 


30 


York,  OQ  tlie  first  day  of  July,  in  the  year  (A.  J).  1891)  One 
Thousand  Eight  Hundred  and  Ninety-One,  with  interest  thereon, 
at  the  rate  of  seven  per  cent,  per  annum,  payable  semi-annually, 
in  the  City  of  New  York  or  London,  in  gold,  as  the  interest 
coupons  or  warrants  annexed  maybe  stamped,  on  the  first  days  of 
July  and  January,  in  each  year  ensuing,  until  the  said  principal 
sum  shall  be  fully  paid  and  satisfied,  on  the  presentation  and  sur- 
render of  the  annexed  coupons,  or  interest  warrants.  The  pay- 
ment of  the  principal  and  interest  of  said  Bonds  is  secured  by  a 
conveyance  bearing  date  the  first  day  of  July,  A.  D.  1866,  exe- 
cuted by  said  Railway  Company,  unto  Shepherd  Knapp  and 
David  S.  Dodge,  Trustees,  conveying  to  said  Trustees,  ten  sections, 
or  six  thousand  four  hundred  acres  of  land,  for  each  mile  of  said 
road  constructed  and  to  be  constructed  by  the  said  Eailway  Co,, 
being  part  of  (10,240  acres)  ten  thousand  two  hundred  and 
forty  acres  of  land  per  mile,  donated  and  granted  by  the  State  of 
Texas,  to  aid  said  Railway  Company  in  the  construction  of  its 
Railway,  from  the  City  of  Houston  to  Red  River,  said  lands  having 
been,  and  are  to  be  selected  along  the  line  of  said  Railway,  and 
elsewhere  from  the  public  domain  of  the  State  of  Texas,  the  said 
Trustees  being,  amongst  other  things,  duly  authorized  and  em- 
powered in  and  by  such  conveyance,  to  sell  said  lands  or  any  part 
thereof,  and  with  the  proceeds  redeem  said  Bonds,  from  time  to 
time,  as  they  may  be  in  funds  from  such  sales.  And  as  a  further 
and  additional  security  for  the  payment  of  said  Bonds  with  inter- 
est, as  aforesaid,  the  said  Railway  Company  have,  in  and  by  said 
conveyance  to  said  Trustees,  also  conveyed  to  said  Trustees  by 
way  of  mortgage,  all  and  singular,  the  whole  and  entire  line  of 
said  Railway,  constructed  and  to  be  constructed,  commencing  at 
the  City  of  Houston,  aforesaid,  and  extending  to  Red  River ;  and 
also,  all  and  singular,  the  several  tracts,  pieces  or  parcels  of  land, 
which  now  are,  or  may  hereafter  be  constituted  the  site  of  the 
road-way,  turn-outs,  engine-houses,  workshops,  depots  and  other 
buildings,  and  all  the  lands  and  real  estate  which  now  constitute 
or  may  may  hereafter  constitute  or  be  a  part  of  the  road  of  said 
Company,  from  the  City  of  Houston  to  Red  River,  in  the  State  of 
Texas ;  and  also,  all  and  singular,  the  superstructure  of  said  road. 


31 


whether  now  made  or  hereafter  to  be  made,  and  all  other  improve- 
ments on,  or  pertaining  to  said  railroad,  whether  now  built  and 
made,  or  to  be  built  and  made  hereafter;  and  also,  all  and  singu- 
lar, the  locomotive  engines  and  other  rolling  stock,  and  all  the 
otherv  equipments  of  every  kind  and  description,  which  have 
already  been  or  may  hereafter  be  procured  for,  or  used  on  said 
road,  and  all  the  materials,  tools,  implements,  utensils  and  other 
personal  property  which  have  been  or  may  hereafter  be  procured 
in  connection  with  said  road  ;  and  also,  all  and  singular,  the  char- 
tered rights,  liberties,  privileges  and  franchises  of  said  Railway 
Company,  of  every  kind  and  description,  relating  to  said  road. 
And  as  a  farther  and  additional  security  to  the  holders  of  this 
issue  of  Bonds,  it  is  provided  in  said  conveyance,  that  the  said 
Railway  Company  shall  deposit  with  said  Trustees,  on  or  before 
the  first  .day  of  December,  in  each  year,  commencing  with  the 
year  1870,  (eighteen  hundred  and  seventy,)  two  per  cent,  of  the 
amount  of  said  Bonds,  annually,  as  a  sinking  fund,  in  addition  to 
that  derived  from  the  sale  of  lands,  and  with  the  same  to  purchase 
and  cancel  said  Bonds.  These  Bonds  are  convertible  into,  or  re- 
ceivable at  par,  in  payment  for  any  of  the  lands  t)f  the  Railway 
Company,  hereby  conveyed  to  said  Trustees,  to  secure  the  pay- 
ment of  said  Bonds,  the  same  as  if  payment  was  made  in  money. 

In  Witness  Whereof,  the  said  Houston  and  Texas  Central 
Railway  Company,  in  accordance  with  their  Charter  and  By-Laws, 
have  caused  this  Bond  to  be  attested  by  its  President  and  Secre- 
tary, and  its  corporate  seal  to  be  affixed  thereto,  this  first  day  of 
July,  A.  D.  1866,  (eighteen  hundred  and  sixty-six.) 

[L.  S.] 

 President. 

 Secretary. 

We  do  hereby  Certify,  that  the  foregoing  is  one  of  a  series 
of  Bonds  of  One  Thousand  Dollars  each,  authorized,  and  not  to 
exceed  the  rate  of  twenty  thousand  dollars  ($20,000)  per  mile  of 
finished  road,  for  each  mile  of  constructed  road,  issued  by  the 
Houston  and  Texas  Central  Railway  Company,  to  secure  the  pay- 
ment of  which,  said  Company  has  executed  to  us  a  Deed  of  Trust, 


32 


as  stated  in  tlie  above  Bond,  which  deed  of  Trust  bears  date  July 
1st,  1866,  and  that  we  have  accepted  said  Trust. 

And  we  Further  Certify,  that  this  series  of  Bonds  is  se- 
cured by  a  first  mortgage  upon  6,400  (six  thousand  four  hundred) 
acres  of  land,  for  each  and  every  mile  of  said  road  constructed, 
and  is  also  a  first  mortgage  upon  the  whole  line  of  said  Railway, 
and  its  appurtenances,  from  the  City  of  Houston  to  its  terminus  at 
Bed  River,  about  380  miles,  (three  hundred  and  eighty  miles,) 
and  its  chartered  rights  and  franchises,  excepting  liens  on  the  first 
seventy-five  miles  of  said  road,  commencing  at  the  City  of  Houston 
aforesaid,  not  exceeding  in  amount,  four  hundred  and  fifty  thou- 
sand dollars  to  provide  for,  and  secure  the  payment  of  this  series 
of  Bonds,  with  interest,  and  to  make  the  said  Deed  of  Trust,  so 
executed  to  us,  equivalent  to  a  first  mortgage  upon  the  whole  line 
of  said  Railway,  we  have  withheld  from  issuance  an  equal* amount 
with  the  said  amount  which  is  already  a  lien  upon  the  said  first 
seventy-five  miles  of  said  road,  and  which  Bonds  so  withheld,  are 
not  to  be  issued,  except  as  the  foregoing  amount  which  is  now  a 
lien  upon  said  first  seventy-five  miles  of  said  road  shall  be  liqui- 
dated and  discliarged,  so  that  in  no  event  shall  there  be  an 
incumbrance  by  the  said  series  of  Bonds,  in  the  aggregate,  on  the 
said  Railway  and  the  lands  so  conveyed  to  us,  of  more  than  §20, 
000  (twenty  thousand  dollars)  per  mile,  on  each  mile  of  said  road 
built  or  to  be  built. 

1  Trustees. 


And  Whereas,  said  Railway  Company  have  determined  to 
secure  the  payment  of  said  Bonds  and  interest,  in  the  following 
manner ! 

First,  by  conveyance  unto  the  said  parties  of  the  second  part 
and  the  survivor  of  them,  or  their  and  his  successors,  and  sue- 
ccssor,  and  their  assigns,  in  the  Trust  hereinafter  mentioned,  all 
and  singular,  ten  sections  or  square  miles  of  land,  for  each  mile  of 
Railway  built  and  to  be  built,  for  the  whole  length  of  its  said  road, 
from  the  VAiy  of  Houston,  aforesaid,  to  Red  River,  aforesaid,  sit- 


33 


uated,  lying  and  being  in  the  said  State  of  Texas,  as  hereinbefore 
mentioned. 

Second,  by  conveying  to  the  said  parties  of  the  second  part,  and 
the  survivor  of  them,  and  their  and  his  successors  and  successor, 
in  and  by  the  same  Deed  of  Conveyance,  but  by  way  of  mortgage, 
all  and  singular,  the  whole  and  entire  line  of  said  Railway,  con- 
structed and  to  be  constructed,  commencing  at  the  City  of  Hous- 
ton, aforesaid,  and  extending  to  Ked  River;  and  also,  all  and  sin- 
gular, the  several  tracts,  pieces  or  parcels  of  land,  v/hich  now  are, 
or  may  hereafter  constitute  the  site  of  the  road-way,  turn-outs, 
engine-houses,  work-shops,  depots  and  other  buildings,  and  all  the 
other  lands  and  real  estate  which  now  constitute  or  may  here- 
after constitute,  or  be  a  part  of  the  road  of  said  Railway  Com- 
pany, from  the  City  of  Houston,  aforesaid,  to  Red  River,  afore- 
said, in  the  State  of  Texas ;  and  also,  all  and  singular,  the 
superstructure  and  iron  rails  of  said  road,  whether  now  built  and 
made,  or  hereafter  to  be  built  and  made,  and  all  other  improve- 
ments on,  or  pertaining  to  said  railroad,  whether  now  built  and 
made,  or  to  be  built  and  made  hereafter  ;  also,  all  and  singular, 
the  locomotive  engines  and  other  rolling  stock,  and  all  other 
equipments  of  every  kind  and  description,  which  have  already 
been,  or  may  hereafter  be  procured  for,  or  used  on  said  road,  and 
all  the  materials,  tools,  implements,  utensils  and  other  personal 
property,  which  have  been  or  may  be  hereafter  procured  in  con- 
nection with  the  said  road  ;  and  also,  all  and  singular,  the  char- 
tered rights,  liberties,  privileges,  and  franchises  of  said  Railway 
Company,  of  every  kind  and  description  whatsoever. 

Third,  to  deposit  with  the  said  Trustees,  on  or  before  the  first 
day  of  December,  in  each  year,  commencing  with  the  year  1870, 
(eighteen  hundred  and  seventy,)  two  per  cent,  of  the  amount  of 
said  }3onds,  annually,  as  a  sinking-fund,  in  addition  to  that  to  be 
derived  from  the  sale  of  said  lands. 

Now  Therefore,  this  Indenture  Witnessetii,  That  the 
waid  party  of  the  first  part,  in  order  to  secure  the  payment  of  the 
said  Bonds,  or  such  of  them  as  shall  be  issued,  with  interest  to 
become  due  thereon,  as  aforesaid,  ai:d  in  consideration  of  the  sum 
of  one  doJIar^  to  the  said  party  of  the  first  part,  in  hand  paid,  lias 

2 


34 


granted,  bargained,  sold  and  conveyed,  and  by  these  presents,  does 
grant,  bargain,  sell  and  convey,  unto  the  said  parties  of  the  second 
part,  and  the  survivor  of  them,  and  their  and  his  successors  and 
successor  and  assigns,  all  and  singular,  several  ten  sections  or 
square  miles  of  land  for  each  mile  of  said  Railway  built,  and  to  be 
built,  for  the  whole  length  of  said  Railway,  commencing  at  the 
City  of  Houston,  aforesaid,  and  extending  to  Red  River,  situat^^d, 
lying  and  being  in  the  said  State  of  Texas,  as  hereinbefore  men- 
tioned; and  also,  all  and  singular,  the  several  tracts,  pieces  or 
parcels  of  land  which  novr  are,  or  may  hereafter  be,  or  constitute 
the  site  of  the  road-way,  turn-outs,  engine  houses,  workshops, 
depots  and  other  buildings,  and  all  other  lands  and  real  estate 
which  now  constitute,  or  may  hereafter  constitute  or  be  a  part  of 
the  road  of  the  said  party  of  the  first  part,  from  the  City  of 
Houston,  aforesaid,  to  Red  River,  in  the  State  of  Texas;  and 
also,  all  and  singular,  the  superstructure  and  iron-rails  of  said  road^ 
whether  now  made,  or  hereafter  to  be  made,  and  all  other  im- 
provements on,  or  pertaining  to  said  railroad,  whether  now  built 
and  made,  or  to  be  built  and  made  hereafter ;  and  also,  all  and 
singular,  the  locomotive  engines  and  other  rolling  stock,  and  all 
other  equipments  of  every  kind  and  description,  which  have  already 
been,  or  may  hereafter  be  procured  for,  or  used  on  said  road,  and 
all  the  materials,  tools,  implements,  utensils  and  other  personal 
property,  which  have  been,  or  may  hereafter  be  procured  for  or  in 
connection  with  the  said  road,  or  any  part  thereof,  for  its  whole 
length  from  the  City  of  Houston,  aforesaid,  to  Red  River ;  and 
also,  all  and  singular,-  the  chartered  rights,  liberties,  privileges  and 
franchises  of  the  said  Railway  Company,  of  every  kind  and 
description  relating  to  the  said  road,  which  are  now  possessed  by 
the  said  Railway  Company,  or  which  may  at  any  time  or  times 
hereafter,  be  possessed  by  said  Company,  to  have  and  to  hold,  all 
and  singular,  the  property,  real  and  personal,  with  the  heredita- 
ments and  appurtenances,  and  all  and  singular,  the  chartered 
rights,  liberties,  privileges  and  franchises  hereby  conveyed,  or 
purporting  and  hereby  intended  to  be  conveyed,  unto  the  parties 
of  the  second  part,  and  the  survivor  of  them,  and  their  and  his 
successors  and  successor,  and  to  their  heirs  and  assigns  forever,  as 
joint  tenants  and  not  as  tenants  in  common. 


In  Trust,  nevertheless,  and  upon  the  trusts,  terms  and  con- 
ditions, and  with  the  powers  herein  expressed,  and  first  subject  to 
the  following  lien  or  mortgage  now  existing  upon  the  first  seventy- 
five  miles  of  said  road,  commencing  at  the  Cit}'  of  Houston,  com- 
pleted and  in  use,  to-wit : 

First,  A  mortgage  for  four  hundred  and  fifty  thousand  dollars, 
($450,000),  in  favor  of  the  State  of  Texas,  for  loans  from  the 
School  Fund,  under  the  provisions  of  An  Act  of  the  Legislature 
of  the  State  of  Texas,  entitled  ''An  Act  to  provide  for  the  invest- 
ment of  the  Special  School  Fund,  in  the  Bonds  of  the  Kailroad 
Companies,  incorporated  by  the  State  of  Texas,''  passed  August 
13th,  1856,  which  loans  bear  interest  at  the  rate  of  six  per  cent., 
and  mature  as  follows  . 

8150,000,  on  the  13th  day  of  April,  1867; 
60,000,  on  the  28th  day  of  October,  1867; 
60,000,  on  the  31st  day  of  May,  1868 ; 
30,000,  on  the  23d  day  of  February,  1869; 
30,000,  on  the  6th  day  of  July,  1868 ; 
30,000,  on  the  15th  day  of  June,  1869; 
30,000,  on  the  22d  day  of  July,  1869; 
30,000,  on  the  2d  day  of  August,  1869 ; 
30,000,  on  the  20th  day  of  August,  1869  ; 


§450,000,  with  a  sinking  fund  of  two  per  cent,  per  annum, 
or  nine  thousand  dollars  a  year,  vv^hich  the  said  Railway  Company 
has  paid,  and  is  to  pay.  Said  mortgages  to  the  State  of  Texas 
cover  the  first  seventy-five  miles  of  said  Railway,  commencing  at 
the  City  of  Houston  aforesaid,  and  are  not  liens  upon  any  of  the 
lands  of  the  Company. 

Second,  in  trust  that  when  the  said  several  ten  sections  or  square 
miles,  or  six  thousand  four  hundred  acres  of  land,  for  each  mile 
of  road  built,  or  to  be  built,  hereby  conveyed  or  purporting,  and 
hereby  intended  so  to  be,  shall  be  ascertained,  surveyed  and  loca- 
ted, said  Railway  Company  will  make  schedules  and  descriptions 
of  the  several  sections  and  parcels  of  land,  from  time  to  time,  as 
the  same  shall  be  surveyed  and  located,  and  affix  thereto  the  mini- 
mum prices  at  which  the  same  are  to  be  sold ;  which  prices,  in  the 


36 


aggregate,  for  all  of  said  lands  acquired;  or  wliich  may  hereafter 
be  acquired,  and  hereby  conveyed  or  intended  so  to  be,  shall, 
together  with  the  sinking  fund,  from  the  earnings  of  said  railway,^ 
herein  and  hereby  provided  for,  amount  to  the  sum  of  at  least  the 
amount  of  the  series  of  bonds  which  are  provided  to  be  issued 
under  the  provisions  of  these  presents  ;  and  said  Company  will 
furnish  said  schedules  and  descriptions,  duly  certified  by  said 
Railway  Company,  to  the  said  parties  of  the  second  part^  together 
with  an  afiidavit  of  the  President  and  Secretary  of  said  Railway 
Company,  that  to  the  best  of  their  knowledge,  information  and 
belief,  such  minimum  prices  have  been  affixed,  having  reference 
to  the  relative  value  of  the  different  sections  and  parcels  of  land  ; 
and  as  often  as  once  in  at  least  two  years,  the  said  Railway  Com- 
pany shall  appraise  said  sections  and  parcels  of  land,  and  affix 
minimum  prices  thereto,  in  the  same  manner  and  with  the  like 
force  and  effect  as  aforesaid.  And  whenever,  and  so  often  as  such 
schedule  and  description  of  said  land  shall  be  made  as  aforesaid^ 
the  same  shall  be  duly  acknowledged  by  the  party  of  the  first  part 
under  its  corporate  seal,  and  in  such  manner  as  to  entitle  them  to 
be  recorded,  and  shall  be  duly  recorded  by  the  party  of  the  first 
part,  in  all  counties  in  which  said  lands  may  be  located ;  and  the 
descriptions  of  said  lands  when  made,  shall  be  deemed  and  taken 
as  a  part  of  this  indenture,  in  the  same  manner  and  with  the  like 
effect  as  though  said  description  had  been  written  and  incorporated 
into  the  body  of  this  indenture  at  the  time  of  the  execution  and 
delivery  thereof.  And  whenever  said  Railway  Company  shall 
certify,  in  writing,  to  said  trustees,  that  it  has  contracted  for  the 
sale  of  any  section  or  parcel  of  said  lands,  at  a  sum  not  less  than 
the  minimum  prices  affixed  to  the  same,  and  ten  per  cent,  at  least, 
of  the  consideration,  shall  be  paid  to  the  trustees,  and  a  bond  and 
mortgage  upon  the  premises  contracted  to  be  sold,  in  proper  form? 
from  the  purchaser  to  the  trustees,  securing  the  residue  of  the  con- 
sideration money,  with  the  interest  thereon,  as  hereinafter  men- 
tioned,, shall  be  delivered  to  the  trustees,  such  mortgage  having 
been  first  duly  acknowledged  and  recorded,  the  said  trustees  will 
thereupon  make,  execute  and  acknowledge  a  deed  conveying  to 
such  purchaser,  his  heirs  and  assigns,  all  the  rights,  title,  interest. 


37 


estate  and  property  of  the  said  trustees,  of,  in  and  to  the  section 
or  parcel  of  land  so  sold,  with  a  covenant  that  they  have  not  done 
any  act,  matter  or  thing,  to  defeat  or  prejudice  their  title  to  the 
lands  so  conveyed;  provided  that  in  all  cases  the  true  consider- 
ation or  price  of  the  land  shall  be  set  forth  in  the  conveyance,  and 
shall  in  no  case,  except  as  hereafter  provided,  be  less  than  the 
minimum  price  affixed  to  the  same  as  aforesaid.  The  residue  of 
the  principal  sum  must  be  secured  by  the  mortgage  or  deed  of 
trust  of  the  purchaser,  and  the  interest  thereon  must  not  be  less 
than  the  rate  of  tight  per  cent,  per  annum,  and  be  payable 
annually. 

Sales  may  also  be  made,  in  like  manner,  of  any  section  or  parcel 
of  said  land,  at  less  than  the  minimum  prices  affixed  to  the  same 
as  aforesaid,  provided  that  the  President  or  Secretary  of  the  said 
Railway  Company  shall  make  and  furnish  to  said  trustees  an  affi- 
davit that  the  price  agreed  on  is,  in  his  opinion,  the  full  market 
value  of  the  land  so  agreed  to  be  sold,  and  provided  that  the 
aggregate  on  all  sales  then  previously  made  shall  be  equal  to  or 
above  the  aggregate  of  all  the  lands  sold  as  specified  in  said 
schedules. 

Third,  the  consideration  money,  or  any  such  sales  of  said  lands, 
may  be  paid  either  in  whole  or  in  part,  by  delivering  to  said  trus- 
tees, to  be  cancelled,  one  or  moi'e  of  the  said  series  of  bonds  which 
may  have  been  issued  by  the  said  Eailway  Company,  as  aforesaid, 
at  their  par  value ;  and  payments  upon  any  such  mortgage  of  the 
purchaser  of  any  of  said  lauds,  may  be  made  by  delivering  to  said 
trustees  one  or  more  of  said  bonds  of  the  s.iid  llailway  Company, 
as  aforesaid,  at  their  par  value,  amounting  in  the  aggregate  to  said 
consideration  or  purchase  money;  and  two  or  more  purchasers  of 
said  lands  may  unite  and  pay  a  part  or  all  of  the  aggregate  amount 
of  consideration  money  of  their  purchases,  or  a  ipavt  or  all  of  the 
aggregate  amount  of  their  mortgages,  by  delivering  to  said  trustees 
said  bonds,  to^the  amount  of  such  payment,  to  be  cancelled. 

And  it  is  further  provided  by  these  presents,  that  if  the  lands 
which  the  said  Railvray  Company  is  entitled  to  acquire,  under 
the  provisions  of  said  acts,  or  any  act  or  acts  of  the  Legislature 
of  the  State  of  Texas,  in  that  behalf,  shall  not  be  acquired^ 


38 


secured  and  selected,  within  a  reasonable  time  after  tlie  execution 
of  these  presents,  and  said  schedules  and  descriptions  thereof  shall 
not  be  prepared  and  delivered  as  aforesaid  by  the  said  party  of  the 
first  part,  then  the  same  may  be  done  by  the  parties  of  the  second 
part,  in  the  same  mode,  but  in  the  name  of  the  said  party  of  the 
first  part,  and  recorded  as  aforesaid,  and  shall  in  like  manner  be- 
come a  part  of  this  indenture,  as  though  said  descriptions  had 
been  written  in  the  body  of  this  indenture,  and  shall  be  afiixed  to 
this  instrument,  in  the  same  manner  and  with  •the  like  effect  as  if 
done  by  the  party  of  the  first  part ;  and  to  that  end  and  purpose, 
such  trustees  are  hereby  authorized  and  empowered  to  do  all 
things  requisite  and  necessary  under  the  provisions  of  the  said 
acts  to  entitle  them  to  acquire,  secure  and  select,  such  lands  in  the 
name  of  the  said  party  of  the  first  part. 

And  the  said  Houston  and  Texas  Central  Railway  Company, 
the  party  of  the  first  part  hereto,  doth  hereby,  for  itself  and  its 
successors,  covenant,  promise  and  agree  to  and  with  the  said  parties 
of  the  second  part,  and  the  survivor  of  them,  and  their  and  his 
successors  and  successor,  that  the  said  party  of  the  first  part,  and 
its  successors,  shall  and  will,  at  any  time  or  times  thereafter,  and 
from  time  to  time,  execute,  acknowledge  and  deliver,  under  its 
corporate  seal,  to  the  said  parties  of  the  second  part,  and  the  sur- 
vivor of  them,  and  their  and  his  successors  and  successor,  all  such 
further  and  other  assurances,  deeds,  mortgages,  obligations,  trans- 
fers, indentures  and  instruments  in  writing,  and  shall  and  will  do 
all  such  further  acts  and  things  as  shall  or  may  be  proper  or  neces- 
sary, or  as  their  or  his  counsel,  learned  in  the  law,  shall  deem 
necessary,  proper  or  expedient,  for  the  better  or  more  efi'ectually 
securing  the  payment  of  the  series  of  bonds  provided  to  be  issued 
under  and  by  virtue  of  these  presents,  and  the  interest  due  or  to 
grow  due  thereon,  or  for  carrying  into  effect  the  interest, 
design,  object  and  purposes  of  ih^se  presents,  or  making,  preserv- 
ing, continuing  and  keeping  valid  and  effectual  the  lieu  and  incum- 
brance, created  or  intended  to  be  created  by  the  execution,  delivery 
and  recording  of  this  indenture,  upon  all  the  property, .  real  and 
personal,  rolling  stock,  e({uipments,  franchises  and  effects,  now 
owned,  possessed  or  acquired,  or  which  shall  hereafter  be  owned, 


39 


possessed  or  acquired  by  the  said  party  of  the  first  part,  and  hereby 
granted  and  conveyed,  or  purporting  and  intended  so  to  be. 

And  the  said  party  of  the  first  part  doth  hereby  further  cove- 
nant, promise  and  agree,  to  and  with  the  said  parties  of  the  second 
part,  and  the  survivor  of  them,  and  their  and  his  successors  and 
successor,  thaWthe  said  party  of  the  first  part  shall  and  will  appro- 
priate and  set  apart  from  and  out  of  the  earnings  of  said  railway 
for  the  year  1870  (eighteen  hundred  and  seventy)  and  for  each 
successive  year  thereafter,  until  all  the  bonds  of  the  series  pro- 
vided for  by  this  indenture,  which  may  hereafter  be  issued,  shall 
be  paid  off  and  extinguished,  a  sum  annually  equal  to  two  per 
cent,  of  the  amount  of  all  such  bonds  as  shall  then  be  outstanding, 
which  sum  shall  be  paid  to  the  said  trustees  by  the  party  of  the 
first  part,  on  or  before  the  first  day  of  December  in  each  of  said 
years,  and  the  said  last  mentioned  moneys,  together  with  all  moneys 
which  may  accrue  to,  and  be  received  by  such  trustees  from  the 
sale  of  lands  in  the  execution  of  their  said  trust,  after  deducting 
all  costs,  charges  and  expenses  attending  such  sales  in  the  execu- 
tion of  the  said  trust,  shall  constitute  a  sinking  fund  for  the 
redemption  of  the  said  bonds,  and  shall  be  faithfully  applied  to 
that  object. 

And  it  shall  be  the  duty  of  any  trustees  or  trustee,  who  shall 
act  as  trustees  or  trustee  under  and  by  virtue  of  these  presents, 
whether  named  in  this  instrument,  or  who  may  be  the  successors 
or  successor  of  those  named  therein,  on  or  before  the  fifteenth  day 
of  December,  1872,  (eighteen  hundred  and  seventy-two,)  and 
each  ensuing  year,  to  publish  in  one  or  more  newspapers  having 
general  circulation  in  the  cities  of  New  York  and  London,  at  their 
discretion,  an  advertisement  setting  forth  the  amount  of  said  sink- 
ing fund  then  on  hand,  and  requesting  the  holders  of  said  bonds 
to  send  written  proposals  to  said  trustees,  specifying  the  terms 
respectively  for  which  they  wouy  be  willing  to  sell  bonds  held  by 
them,  and  said  advertisement  having  been  published  for  sixty 
days,  the  trustees  shall  apply  said  amount  to  the  purchase  of  such 
of  said  bonds  as  shall  have  been  offered  at  the  lowest  price,  pro- 
vided that  the  price  so  to  be  paid  shall  not  exceed  ten  per  cent, 
premium  on  the  par  value  of  such  bonds ;  but  if  said  bonds  can- 


40 


not  be  purchased  at  such  rate,  or  at  a  less  rate,  by  the  said  trust 
tees,  then  it  shall  be  the  duty  of  such  trustees,  without  any  unrea- 
sonable delay,  to  invest  the  said  amount  on  hand  appertaining  to 
said  sinking  fund,  in  the  stocks  of  the  United  States,  and  all 
moneys  appertaining  to  said  sinking  fund,  which  shall  come  into 
the  hands  of  trustees  from  the  sale  of  lands  or  otherwise,  shall, 
for  the  time  being,  and  until  the  same  can  be  applied  to  the  pur- 
chase of  said  bonds,  or  be  invested  in  stocks  as  aforesaid,  be 
deposited  in  one  or  more  of  th  e  Trust  Companies  in  the  city  of 
New  York,  upon  the  best  terms  which  the  said  trustees,  in  their 
reasonable  discretion,  can  obtain  for  the  same. 

And  the  trustees,  or  trustee,  who  shall  act  under  and  by  virtue 
of  these  presents,  shall  as  often  as  once  in  each  year  during  the 
continuance  of  their  trusteeship,  if  required  by  the  party  of  the 
first  part,  make  and  furnish  to  the  said  party  of  the  first  part,  a 
detailed  statement  of  the  land  sold  by  them,  and  also  of  the  moneys 
•and  securities  in  their  hands  as  such  trustees,  and  of  such  other 
matters  connected  with  their  trusteeship,  as  the  said  party  of  the 
first  part  may  reasonably  require. 

Whenever  the  trustees  shall  receive  any  of  the  bonds  above 
mentioned,  in  payment  for  lands  sold,  or  on  mortgages  held  by 
them  as  such  trustees,  or  by  purchase  of  such  bonds,  as  above  pro- 
vided, the  same,  with  any  unpaid  interest  warrants,  or  coupons 
annexed  thereto,  shall  be  immediately  cancelled,  and  shall  there- 
after only  be  held  as  vouchers  by  said  trustees.  And  if  default 
shall  be  made  in  the  payment  of  the  principal  sum  of  said  bonds, 
or  any  of  then:^,  when  they  shall  become  due,  the  said  trustees, 
and  the  survivors  of  them,  and  the  successors  and  successor  of  such 
survivor,  may  thereupon  sell  at  public  or  private  sale,  for  the  best 
price  which  can  be  obtained  for  the  same,  all  or  any  part  of  said 
lands,  which  shall  then  remain  unsold,  sufficient  to  pay  the  prin- 
cipal and  interest  then  remainjiig  due  upon  any  of  said  bonds 
which  shall  then  be  outstanding  and  unpaid;  and  such  trustees 
may  appoint  one  or  more  agents  or  attorneys,  to  make  sales, 
execute  conveyances,  and  receive  the  purchase  money  and  pay  the 
said  principal  moneys  and  interest  then  remaining  unpaid  on  said 


41 


bonds,  or  any  of  them,  or  apply  tlie  same  pro  rata;  if  not  suffi- 
cient to  pay  said  bonds  and  interest  in  full. 

And  it  is  further  understood  and  agreed  that  until  default  shall 
have  been  made  in  the  payment  of  the  principal  or  interest  of  the 
said  bonds,  and  a  deficiency  shall  be  found  to  be  due  and  payable 
on  said  bonds,  after  having  applied  the  moneys  which  shall  con- 
stitute said  sinking  fund,  and  the  proceeds  of  the  sales  of  all  the 
lands  described  in  this  indenture,  or  the  proceeds  of  such  of  said 
lands  as  shall  have  then  been  made,  or  which  can  be  sold  by  said 
trustees,  to  the  payment  of  said  bonds  and  interest,  and  such  costs, 
charges  and  expenses  as  the  trustees  may  sustain  or  be  put  to  in 
the  execution  of  the  trust  hereby  created,  said  Railway  Company 
shall  be  suffered  and  permitted  to  possess,  hold  and  enjoy  the  said 
Railway,  with  all  its  appurtenances  and  equipments,  and  all  other 
things  appertaining  to  the  Railway,  and  to  use  and  operate  the 
same,  and  receive  the  income  and  profits  thereof  in  the  same  man- 
ner as  though  this  indenture  had  not  been  made  and  executed  ; 
provided  always,  however,  and  these  presents  are  made  upon  this 
further  condition,  that  if  default  shall  be  made  in  the  payment  of 
the  interest  which  shall  accrue  and  become  due  upon  the  said 
bonds,  or  any  of  them,  or  any  part  thereof,  then 'and  in  every  such 
case,  it  shall  be  the  duty  of  the  said  trustees  at  the  request  of  any 
bond  holder  or  coupon  holder,  forthwith  to  make  a  demand,  in 
writing,  on  the  President  or  Secretary  of  the  Company,  if  any  there 
shall  be,  or  any  officer  representing  said  Company,  that  payment 
of  said  interest  so  in  arrear,  and  unpaid,  be  forthwith  made  ;  and 
if  said  Railway  Company  shall  continue  to  make  default  in  the 
payment  of  such  interest  for  the  space  of  sixty  days  after  such 
demand,  the  said  trustees  shall,  and  they  are  hereby  fully  author- 
ized and  empowered,  to  enter  and  take  possession  of  the  entire 
of  said  Railway,  with  all  and  singular  the  appurtenances  thereto 
belonging  or  in  anywise  appertaining,  or  so  far  as  said  road  may 
then  be  constructed  and  in  operation,  or  any  part  thereof,  at  their 
option,  together  with  all  and  singular  the  other  furniture,  equip- 
ments, rolling  stock,  depots  and  appurtenances  as  hereinbefore 
described;  and  said  trustees  are  hereby  fully  authorized  and 'em- 
powered to  take  such  possession  without  process  of  law,  or  other 


42 


legal  proceedings,  and  to  use,  operate  and  work  said  Railway  and 
receive  the  earnings,  income  and  profits  of  the  same,  paying  from 
such  income  and  earnings  the  expenses  of  running  and  operating 
said  Railway,  and  all  needful  and  necessary  repairs  to  the  same, 
until  the  nett  profits  arising  from  the  earnings  of  said  Railway 
shall  be  sufficient  to  pay  and  discharge  such  arrears  of  interest  in 
full,  when  and  whereupon  the  said  Railway,  with  all  its  appurte- 
nances aforesaid,  shall  be  surrendered  and  delivered  up  to  the  said 
party  of  the  first  part ;  it  being  understood  and  agreed  that  the 
said  trustees,  while  they  shall  be  so  in  the  possession  of  the  said 
Railway,  shall  have  free  access  to  all  the  books  of  the  Com- 
pany, and  shall  have  the  right  to  make  and  pay  out  of  said  earn- 
ings, for  all  necessary  repairs  to  said  road,  and  its  equipments  and 
its  appurtenances,  and  may  pay  any  floating  debt  or  debts  of  the 
Company,  as  well  as  their  ov/n  expenses  and  reasonable  charges 
and  costs  of  repairs,  as  aforesaid,  out  of  the  gross  earnings  of  the 
said  road. 

And  it  is  further  agreed  and  provided,  that  if  default  shall  be 
made  in  the  principal  sum  or  sums  by  virtue  of  the  said  bonds  or 
any  of  them,  or  any  part  thereof,  at  maturity,  it  shall  be  the  duty 
of  the  trustees  thereupon,  to  proceed  and  sell  such  of  the  said  lands 
hereby  conveyed  as  shall  then  remain  unsold,  or  so  much  thereof 
as  may  be  necessa  ry  to  raise  sufficient  moneys  to  pay  off  and  fully 
satisfy  and  discharge,  all  and  singular,  the  said  bonds  then  out- 
standing, with  all  arrears  of  interest  thereon,  together  with  all 
costs,  charges  and  expenses  of  making  such  sales,  and  of  executing 
the  trusts  hereby  created,  and  in  attending  to  the  business  thereof ; 
and  in  such  case  the  trustees  may,  in  their  own  discretion,  sell 
riuch  lands  in  parcels,  at  public  or  private  sale,  at  such  time  or 
times,  and  at  such  place  or  places,  and  at  such  price  or  prices,  as 
they,  the  said  trustees,  in  their  discretion,  may  deem  best  for  the 
interests  of  the  said  bondholders ;  but  if  it  shall  be  deemed  expe- 
dient by  the  trustees  to  sell  at  public  auction,  then  they  shall  first 
advertise  the  same  for  the  space  of  ninety  days,  in  one  or  more 
newspapers  published  in  each  of  the  cities  of  New  York  and  Lon- 
don, having  general  circulation,  setting  forth  the  time,  place  and 
terms  of  sale,  and  giving  a  general  description  of  the  lands  to  be 


43 


soldj  and  tliey  shall  have  power,  in  their  discretion,  to  hold  auc- 
tion sales,  for  the  purpose  of  selling  said  lands  in  portions,  from 
time  to  time,  and  the  proceeds  of  all  and  singular  of  such  sales, 
after  deducting  and  paying  all  the  expenses  attending  the  same, 
and  for  executing  the  trusts  hereby  created,  shall  be  applied  to  the 
payment  of  such  of  said  bonds  as  shall  then  be  outstanding,  and 
the  interest  then  due  thereon;  but  if  the  nett  proceeds  of  such 
sales  shall  not  be  sufficient  to  pay  off  said  bonds  and  interest  in 
full,  and  a  balance  shall  be  found  to  be  still  unpaid,  after  the 
application  of  the  said  nett  proceeds  to  the  payment  of  such  bonds 
and  interest,  then,  and  in  such  case,  it  shall  be  the  duty  of  the 
trustees,  and  they  are  hereby  fully  authorized  and  empowered,  at 
the  end  of  six  months,  from  the  time  of  the  maturity  of  the  said 
bonds,  at  the  request  of  any  holder  of  said  bonds,  or  any  of  them, 
to  take  into  their  possession  the  entire  road  or  railway  of  said  Rail- 
way Company,  from  the  City  of  Houston,  aforesaid,  to  its  terminus 
on  Red  River,  or  elsewhere ;  and  also,  all  and  singular,  the  several 
tracts,  pieces  and  parcels  of  land  which  may  then  constitutQ  the 
site  of  the  road-way,  turn-outs,  engine-houses,  workshops,  depots 
and  other  buildings,  and  all  other  lands  and  real  estate  which  shall 
then  constitute  or  be  a  part  of  the  road  or  railway  of  the  said 
party  of  the  first  part,  from  the  City  of  Houston  to  its  terminus 
on  Red  River,  or  elsewhere  in  the  State  of  Texas;  and  also,  all 
and  singular,  the  superstructure  of  said  road,  and  all  other  im- 
provements on,  or  pertaining  to  said  railroad,  and  also  all  and  sin- 
gular, the  locomotive  engines  and  other  rolling  stock,  and  all  other 
equipments  of  every  kind  and  description,  (which  may  then  be  on 
said  road),  and  all  materials,  tools,  implements,  utensils  and  other 
personal  property  procured  for,  or  in  connection  with  said  road,  or 
any  part  thereof,  for  its  whole  length,  from  the  City  of  Houston, 
aforesaid,  to  its  terminus  at  Red  River,  or  elsewhere  ;  and  also,  all 
and  singular,  the  chartered  rights,  liberties,  privileges  and  fran- 
chises of  the  said  The  Houston  and  Texas  Central  Railway  Com- 
pany, by  whatsoever  corporate  name  or  style  it  may  then  be  known, 
or  called;  and  after  advertising  the  same  for  the  space  of  ninety 
days,  in  one  or  more  newspapers  printed  in  the  cities  of  New  York 
and  London,  and  having  a  general  circulation  in  said  cities,  which 


44 


advertisement  shall  set  fortli  the  time,  place  and  terms  of  sale, 
and  a  general  description  of  the  property  to  be  sold,  to  sell  the 
same  at  public  auction,  to  the  highest  bidder,  as  well  as  all  and 
singular,  the  said  Eailway,  rights,  franchises,  as  all  other  the 
property,  real  and  personal,  and  premises  appertaining  to  said 
Eailway,  and  hereby  granted,  assigned,  mortgaged,  pledged,  trans- 
ferred and  set  over  to  the  said  parties  of  the  second  part,  or  intend- 
ed so  to  be,  and  all  benefits  and  equity  of  redemption  whatsoever, 
of  the  said  ''The  Houston  and  Texas  Central  Eailway  Company," 
the  party  of  the  first  part  hereto,  of,  in  and  to  the  same,  and  every 
part  and  parcel  thereof,  together  with  all  chartered  rights,  liber- 
ties, privileges  and  franchises  belonging  thereto,  or  connected 
therewith ;  and  as  the  attorney  or  attorneys  of  the  said  The 
Houston  and  Texas  Central  Eailway  Company,  the  party  of  the 
first  part  hereto,  for  that  purpose  by  these  presents  duly  consti- 
tuted and  appointed,  the  said  parties  of  the  second  part,  and  the 
survivor  of  them,  and  their  and  his  successors  and  successor,  shall 
have  full  power  and  authority  to  make,  execute,  acknowledge  and 
deliver  to  the  purchaser  or  purchasers  thereof,  good,  valid  and 
sufficient  deed  or  deeds,  conveyance  or  conveyances,  assignments 
or  transfers,  in  fee  simple  or  otherwise,  of  the  said  Eailway,  lands, 
tenements  and  real  estate  appertjjining  to  the  said  Eailway,  and  of 
all  and  singular,  the  said  personal  or  other  property,  chartered 
rights,  liberties,  privileges  and  franchises  hereby  granted,  assigned, 
mortgaged,  transferred  or  conveyed  as  aforesaid,  which  sale  so  to 
be  made  as  aforesaid,  and  which  deeds,  conveyances,  assignments 
and  transfers  so  to  be  made  and  delivered  as  aforesaid,  shall  oper- 
ate to  convey,  assign  and  vest  in  said  purchaser  or  purchasers,  all 
the  rights,  title,  interest  and  estate  whatsoever,  reversionary  or 
otherwise,  of  the  said  Houston  and  Texas  Central  Eailway  Com- 
pany, of,  in  and  to  the  premises  so  sold,  conveyed,  assigned  or 
transferred,  and  which  sale,  so  to  be  made,  shall  be  a  complete  and 
perpetual  bar,  both  at  law  and  in  equity,  against  the  said  Houston 
and  Texas  Central  Eailway  Company,  the  party  of  the  first  part 
hei:eto,  its  successors  and  assigns,  and  all  persons  or  parties  claim- 
ing by,  from  or  under  it  or  them,  in  anywise  or  manner  whatso- 
ever, and  that  out  of  the  moneys  or  proceeds  arising  from  such 


45 


iale  so  to  be  made  as  aforesaid,  after  first  deducting  the  expenses, 
costs,  charges  and  counsel  fees  incurred  in  and  about  the  conduct- 
ing the  said  sale,  they,  the  said  parties  of  the  SQCond  part,  and  the 
survivor  of  them,  and  their  and  his  successors  or  successor,  shall 
pay  and  apply  the  same  to  the  payment  and  extinguishment  of  the 
balance  which  shall  then  remain  due  and  unpaid  on  said  bonds, 
both  principal  and  interest,  rendering  or  paying  over  the  surplus 
of  all  such  moneys,  if  any  there  shall  be,  to  the  said  party  of  the 
first  part  hereto,  its  successors  or  assigns.  And  the  said  party  of 
the  first  part  covenants  to  pay  and  satisfy  all  taxes  of  every  nature 
and  kind  whatsoever,  ordinary  and  extraordinary,  which  shall  or 
may  be  levied  or  imposed  upon  any  of  the  lands,  property  or 
object  embraced  in  this  indenture  of  mortgage,  and  in  case  it  shall 
neglect  to  pay  such  taxes,  or  any  of  them,  for  the  space  of  ninety 
(90)  days  from  the  time  when  such  taxes  shall  become  due  and 
payable,  then  it  shall  be  lawful  for  the  said  parties  of  the  second 
part  and  their  successors,  and  survivor  of  them,  to  pay  ajid  satisfy 
all  such  taxes,  out  of  any  moneys,  funds  or  property  which  may 
be  in  their  hands  belonging  to  the  said  party  of  the  first  part,  or 
in  which  they  may  be  interested  ;  and  said  parties  of  the  second 
part  and  their  successors,  and  the  survivor  of  them,  are  hereby 
fully  empowered  and  authorized  to  issue  and  sell  the  bonds  of  the 
said  party  of  the  first  part,  provided  by  this  indenture,  to  raise 
money  with  which  to  pay  said  taxes. 

This  Indenture  further  witnesseth,  and  these  present  are  upon 
this  express  condition,  that  upon  the  payment  in  full  of  said  Bonds, 
and  interest  due  thereon,  before  any  sale  of  said  Railway  with  its 
appurtenances  and  franchises  shall  have  been  made  aforesaid,  then 
these  presents  and  the  estate  hereby  granted  in  respect  to  the  said 
Railway  with  its  appurtenances  and  real  and  personal  estate  ap- 
pertaining thereto,  and  used  in  connection  therewith,  with  its  said 
franchises,  and  also  in  respect  to  all  of  said  lands  hereby  granted 
and  conveyed,  as  shall  not  then  have  been  sold  and  disposed  of,  at 
the  time  of  the  payment  of  all  of  said  Bonds  and  interest,  shall 
cease  and  be  void,  and  the  said  Plouston  and  Texas  Central  Rail- 
way Company  shall,  in  respect  to  said  last  mentioned  matters  be 
immediately  reinvested,  in  lav/  and  in  fact,  with  the  said  Railway 


46 


and  its  appurtenances,  and  said  real  and  personal  estate  appertain- 
ing thereto,  and  used  in  connection  therewith,  and  shall  also  be 
re-invested  in  law  and  in  fact,  with  all  of  such  other  lands  and 
premises  hereby  granted  and  conveyed  as  shall  not  then  have  been 
sold  or  otherwise  disposed  of,  without  any  entry  or  other  act 
whatever  ;  and  the  said  party  of  the  first  part  covenants  and  agrees 
to  cause  this  deed  to  be  duly  recorded  in  all  proper  counties  and 
other  places,  and  will  satisfy,  pay  and  discharge  all  taxes,  charges, 
liens  and  other  burdens,  which  either  exist  or  may  hereafter  be 
imposed,  or  arise,  upon  all  or  any  part  of  the  property  hereby 
granted  or  conveyed,  or  intended  so  to  be,  and  the  trustees  assume 
no  dut}^  or  responsibility  on  these  subjects,  or  in  relation  to  any 
other  matter,  except  as  herein  expressly  provided. 

The  said^ party  of  the  first  part  hereby  further  covenants  and 
agrees  to  and  with  the  said  parties  of  the  seond  part,  and  the 
survivor  of  them,  and  with  their  and  his  successors  and  successor, 
(that  the  party  of  the  first  part  shall,  and  will,  from  time  to  time, 
and  at  all  times  hereafter,  pay  to  the  said  parties  of  the  second 
part,  and  the  survivor  of  them,  and  their  and  his  successors  and 
successor),  all  costs,  charges  and  expenses  as  the  trustees  may  sus- 
tain or  be  put  to  in  the  execution  of  the  trusts  hereby  created ; 
and  further,  that  the  said  partj  of  the  first  part  shall,  and  wilL 
from  time  to  time,  and  at  all  times  hereafter,  keep  the  said  trustees 
fully  indemnified  and  saved  harmless  against  all  such  costs,  charges 
and  expenses. 

And  it  is  further  hereby  provided  and  agreed,  that  the  said  par- 
ties of  the  second  part,  and  the  survivor  of  them,  and  their  and 
his  successors  and  successor,  shall  be,  and  are  by  these  presents 
fully  authorized  and  empowered  to  make  and  appoint,  by  and  with 
the  consent  of  the  President  and  Secretary  ot  the  parties  of  the 
first  part,  all  such  agents  and  attorneys  in  fact,  and  all  such  attor- 
neys, counselors,  clerks  and  other  agents,  as  they  may  think 
proper,  and  invest  them  and  each  of  them  with  such  powers,  gen. 
eral  or  special,  as  they  may  see  fit  to  grant;  and  in  the  execution 
of  the  duties  gf  the  trusts  conferred  upon  them  by  this  indenture, 
they  may,  at  their  discretion,  proceed  and  act  by  such  agent  or 
agents,  attorney  or  attorneys,  in  any  and  all  cases  where  they  may 


47 


consider  it  expedient  so  to  do,  and  all  acts  done  by  them,  by  or 
througb  any  sucli  agents  or  attorney,  shall  be,  to  all  intents  and 
purposes,  as  effectual,  valid  and  binding,  as  if  done  by  the  said 
parties  of  the  second  part,  or  the  survivor  of  them,  or  their  or  his 
successors  or  successor,  in  person.  And  the  said  parties  of  the 
second  part,  or  any  person  or  persons  acting  as  trustees  or  trustee 
under  this  inc^nture,  shall  not  be  answerable  for  the  default  or 
other  misconduct  of  such  agent  or  agents,  attorney  or  attorneys 
in  fact,  attorneys  or  counselors,  clerks  or  other  agents,  unless 
chargeable  with  vrilful  negligence  in  their  selection ;  and  further, 
neither  of  the  trustees  shall  be  answerable  or  responsible  in  any 
way,  for  the  acts,  omissions  or  defaults  of  his  associate  trustee, 
nor  shall  either  of  the  trustees  be  responsible  for  anything  short  of 
wilful  default  in  the  discharge  of  his  duties. 

This  trust  shall  extend  to  such  bonds,  and  such  onlj,  as  shall 
be  countersigned  by  the  trustees,  and  when  all  of  said  bonds  shall 
be  satisfied  and  discharged,  this  trust  shall  cease.  The  trust  shall 
also  cease  at  the  end  of  twenty-four  calendar  months  after  the 
principal  moneys  of  said  bonds  shall  fall  due,  as  to  all  such  bonds 
as  shall  not  then  have  been  presented  for  payment,  and  whenever 
said  trust  shall  determine,  the  trustees  will  re -convey  to  said  party 
of  the  first  part,  its  successors  or  assigns,  all  their  right,  title  and 
interest,  of,  in  and  to  all  of  said  property  which  may  not  have  been 
previously  sold,  or  othervrise  disposed  of. 

In  case  of  the  death,  incapacity  to  serve  or  resignation  of  either 
trustee,  all  the  estate  and  interest  hereby  created  shall  vest  in  the 
other  trustee,  as  fully  as  if  he  only  had  been  named  in,  and  had 
executed  this  deed  as  the  trustee. 

No  trustee  shall  resign  his  trusteeship,  herein,  without  giving 
notice  in  writing  of  his  intention  so  to  do,  to  the  President  or  Sec- 
retary of  the  said  Railway  Company,  thirty  days  prior  to  his  res- 
ignation ;  and  whenever  it  shall  happen,  from  any  cause,  that  there 
shall  be  only  one  trustee,  it  shall  be  lawful  for  the  said  Eailway 
Company,  or  any  of  the  bondholders,  to  apply  in  vrriting  to  the 
Chief  Justice  of  the  Supreme  Court  of  the  State  of  Texas,  to  ap- 
point another  trustee  to  supply  the  vacancy;  but  until  such  vacancy 
vshall  be  supplied  as  aforesaid,  all  the  powers,  duties  and  trusts 


48 

which  the  said  parties  of  the  second  part  are  by  this  indenture 
required  or  authorized  to  execute  or  discharge,  shall  devolve  upon, 
and  may  be  executed  and  discharged  by  the  remaining  trustee,  and 
the  said  Chief  Justice  is  hereby  authorized,  after  giving  notice  of 
ten  days  to  the  remaining  trustee,  in  writing,  addressed  to  him 
through  the  postoffice,  unofficially,  and  without  lega]|proceedings, 
to  appoint  a  suitable  person,  in  his  judgment,  residing  in  the 
City  of  New  York,  as  trustee  to  fill  such  vacancy,  and  the  person 
so  appointed  shall  be,  and  act  as  trustee,  and  with  the  remaining 
trustee,  exercise  all  the  powers  and  discharge  all  the  trusts  and 
duties  which,  by  this  indenture,  belong  to  the  parties  of  the  second 
part,  as  lawfully,  fully  and  effectually,  as  if  done  by  the  said  par- 
ties of  the  second  part,  acting  in  person.  And  if  it  should  so  hap- 
pen at  any  time  that  the  trusteeship  shall  be  entirely  vacant,  and 
no  trustee  shall  remain  or  survive,  then,  and  in  such  case,  the  said 
Chief  Justice,  upon  application  in  writing,  of  the  President  or 
Secretary  of  the  Company,  or  any  of  the  bondholders,  may  sum- 
marily, and  without  legal  proceedings,  appoint  two,  in  his  opinion, 
fit  and  suitable  persons,  living  in  the  City  of  New  York,  to  fill 
said  office  of  trustees  ;  and  the  said  two  persons,  thus  appointed, 
shall  be  and  act  as  trustees  under  this  indenture,  lawfully  exercis- 
ing  all  the  powers,  and  executing  and  discharging  all  the  trusts 
and  duties,  hereby  belonging  to  the  said  parties  of  the  second  part. 

And  it  is  hereby  further  provided  that,  if  at  any  time,  only  one 
trustee  shall  survive  or  remain,  then,  and  in  such  case,  he  shall  be, 
and  is  hereby  authorized,  so  long  as  he  remains  sole  trustee,  to 
exercise  all  the  powers,  and  execute  and  discharge  all  the  trusts 
and  duties,  which,  by  this  indenture,  belong  to  the  said  parties  of 
the  second  part,  as  fully,  effectually  and  lawfully,  as  both  the  said 
parties  might  or  could  do  if  personally  acting. 

In  Witncj^s  Whereof,  the  said  party  of  the  first 
part,  has  hereunto  affixed  its  Corporate  Seal,  and  has 
caused  these  presents  to  be  attested  by  the  signa- 
[l.  s.]  turcs  of  its  President  and  Secretary,  and  the  said 
parties  of  the  second  part,  have  to  these  presents 
subscribed  their  names,  and  affixed  their  seals,  the 
date  and  year  first  above  written. 

W.  J.  IHiTCHINS,  I^resident. 
James  F.  Loudon,  Secretary. 


49 


THE  STATE  OF  TEXAS,  | 

Harris  County,  j 

Personally  came  Wm.  J.  Hutcbins  and  James  F.  Loudon,  to  me 
well  known,  the  former  being  President,  and  the  latter  Secretary, 
of  tbe  Houston  and  Texas  Central  Railway  Company,  to  me  known 
as  such,  and  to  me  severally  acknowledged  tbat  tbey  bad  severally 
signed  tbe  said  instrument  preceding  tbis  certificate,  in  tbeir 
official  capacity,  and  tbat  tbe  seal  tbereto  attached,  is  tbe  seal  of 
said  Company,  and  tbat  tbey  deliver  tbis  instrument  as  tbe  bind- 
ing act  and  deed,  of  tbe  said  Houston  and  Texas  Central  Railway 
Company,  for  tbe  purposes  and  considerations  therein  stated. 

To  Certify  which,  T  have  hereunto  put  my 
hand  and  official  seal,  at  Houston,  in  said  county, 
[l.  s.]      this  tbe  12th  day  of  Cctober,  A.  D.,  eighteen  hun- 
dred and  sixty-six. 

A.  P.  THOMPSON,  Notary  Public, 

Harris  County. 


We,  Shepherd  Knapp  rnd  David  S.  Dodge,  parties  of  the  second 
part,  in  the  foregoing  Deed  of  Trust,  do  hereby  accept  the  trusts 
contained  in  said  deed,  and  agree  to  perform  the  same,  according 
to  the  best  of  our  ability. 

Witness  our  hands  and  seals,  the  first  day  of  July,  one  thousand 
eight  hundred  and  sixty-six. 

SHEPHERD  KNAPP,  [l.  s.] 
DAVID  S.  DODGE,  [l.  s.] 

Sealed  and  delivered  in  the  presence  of 
Moses  B.  Maclay, 
Lewis  Daniels. 


50 


STATE  OF  NEW  YORK,  ) 

[  s.  s. 

City  and  County  of  New  York.  J 

I,  Moses  B.  Maclay,  residing  in  the  City,  County  and  State  of 
New  York,  a  Comujissioner  of  the  State  of  Texas,  for  the  snid 
State  of  New  York,  to  t;ike  depositions,  affidavits,  acknowledg- 
ments of  deeds,  &e.,  eoijiuiissioned  under  the  laws  of  Texas,  aod 
qualified,  do  hereby  CQrtil"y  that  on  the  thirteenth  day  of  Septem- 
ber, one  thousand  eipht  hundred  and  sixty-six,  before  nie,  person- 
ally appeared  the  within  named  Shepherd  Knapp  and  David  S. 
Dodge,  parties  to  a  certain.  Deed  of  Trust,  bearing  date  the  first 
day  of  July,  1866,  hereunto  annexed,  and  severally  acknowledged 
that  they  signed,  sealed  and  delivered  the  annexed  Deed  of  Trust, 
as,  and  for  their  own  act  and  deed. 

In  Testimony  Whereof^  I  hereto  sign  my  name, 
[l.  s.]      and  affix  my  seal  of  office,  the  day  and  year  first 
aforesaid. 

MOSES  B.  MACLAY, 

Texas  Commissioner. 


liecorded  on  Harris  County  Record  Book  of  Mortgages,  Volume 
Two,  pages  72  to  82,  on  the  twelfth  day  of  October,  A.  D.  1866, 
at  12  o'clock,  M. 

To  Certify  which,  I  hereto  set  my  hand  and 
[l.  s.]      seal  of  the  Harris  County  Court,  at  office  in  Hous- 
ton, October  12th,  1866. 

STERLING  FISHER, 
Clerk  of  County  Court,  Harris  County. 


S  T     T  E  M  E  ISr  T 


Of  the  traffic  and  business  of  the  road,  being  eighty  miles  long, 
from  May  1st  to  October  1st,  1867.  and  aftervvar<is  to  January 
1st,  1868,  one  hundred  miles  long,  at  which  time  the  Washing- 
ton County  Road,  being  a  branch  from  Hempstead  to  Brenham. 
twenty-five  miles,  was  purchased  and  run  as  a  part  of  the  Com- 
pany's property. 

(coin.)  (coix.) 
Gross  Income.        All  Expenses  and 
Repairs. 

1867—  May,       80  . miles,   $51,895  64     818,86-4  06 

June,    36,079  19       18,366  06 

July,  ••   25,109  20       16,860  36 

August,  ....    24,373  77       16,791  08 

September,    25,389  27       17,481  20 

October,    100  miles,   30,681  86       17,604  18 

November,    54,314  18       20,106  21 

December,       "        _.    78,840  72       21,834  61 

1868—  January,  125  miles,   60,390  17       20,325  18 

February,  .   67,512  84       22,412  60 

March,    57,015  56       21,606  12 

April,    64,448  66       21,986  42 

1576,051  08    ,^134,238  08 

Nett  receipts,   §341,813  00 

The  expenses  of  all  kinds,  repairs  and  renewals,  being  about 
forty  per  cent,  of  the  gross  earnings. 

The  gross  income  for  the  past  year  has  been  largely  below  wiiat 
may  be  expected  in  ordinary  seasons,  without  taking  into  the  cal- 
culation the  certain  increase  v/hich  will  result  irom  the  large  injini- 
gration  that  is  settling  along  the  Vine  of  this  road,  and  which,  in 


52 


the  iiiiiiiediate  future,  promises  to  be  of  vast  proportions.  The 
past  year  has  beeu  one  of  extraordinary  depression  in  business.  In 
addition  to  the  general  prostration  of  the  productive  energies  of 
the  people,  caused  by  the  uncertain  condition  of  political  affairs, 
for  over  four  mouths  the  coast  country  was  visited  with  the  yel- 
low fever  scourge,  to  a  degree  never  before  known,  paralyzing,  for 
the  time,  almost  every  branch  of  business  ;  and,  in  addition,  the 
cotton  crop,  which  is  the  principal  article  of  production  for  trans- 
portation, was  so  destroyed  or  damaged  by  the  worm  as  to  yield 
not  one  half  the  usual  quantity.  It  is  considered  a  prudent  cal- 
culation, that  under  ordinary  circumstances,  the  income  of  the 
Road  would  have  been  fifty  per  cent,  greater  than  it  was,  and  that 
it  will  be  in  that  proportion  greater  the  coming  season. 

PEOPERTY  OF  THE  COMPANY. 

100  miles  of  first-class  road,  from  Houston  to  Bryan,  with  all 
necessary  sidings,  turn-tables,  freight,  depot  and  station  houses, 
platforms,  wood  and  water  stations  and  appurtenances — four-fifths 
of  the  supports  to  bridging  and  culverts  built  of  rock  masonry. 

25  miles  of  road,  from  Hempstead  to  Brenham,  on  the  branch 
route  to  Austin,  the  capital  of  the  State — and  work  on  the  exten- 
sion beyond  Brenham,  costing  $40,000. 

Work  paid  for  on  the  extension  beyond  Bryan,  on  the  section  of 
thirty  miles,  under  contract  to  be  finished  by  October,  1868, 
§168,000. 

11  Engines. 

160  Freight  Cars. 
60  Dump  Cars. 
7  First-class  Passenger  Cars. 
7  Baggage,  Mail  and  Express  Cars. 

An  iron  house  for  Machine  Shop,  with  stationary  engines, 
machinery  and  tools  complete,  for  repairing. 

In  addition  to  right  of  v/ay,  depot  and  shop  grounds,  city  prop- 
erty and  timber  lands  on  the  line  of  the  road,  worth  S70,000. 

1440  sections  of  640  acres  of  land  each,  921,000  acres,  two- 
thirds  of  which  is  located  in  tlte  wheat  lands  of  the  State,  on  the 


53 


waters  of  Red  River  and  the  upper  waters  of  the  Trinity,  Brazos 
and  Colorado  rivers,  and  the  other  third  principally  upon  the  pine 
timbered  lands  of  the  Trinity,  Neches  and  Sabine  rivers. 

LIABILITIES  OF  THE  COMPANY. 

Bonds  to  the  State  of  Texas,  bearing  6  per  cent,  interest,  $  469,000 
First  Mortgage  Bonds,  bearing  7  per  cent,  gold  interest,  1,663,000 

Bills  payable,  and  obligations  of  all  kinds,   206,000 

Stock  paid  in,   800,000 

Four-fifths  of  the  stock  belongs  to  the  managers  of  the  road,  and 
they  have  declared  and  paid  no  dividends,  but  have  invested  the 
nett  earnings  in  extending  the  road. 

Houston,  May  1st,  1868. 


